Allocate customer receipts

Allocate credits to debits

Open: Sales Ledger > Enter Transactions > Allocation.

  1. Select the customer account you want to allocate receipts for.

    Note: You cannot allocate receipts for customers whose account type is balance forward For Balance Forward accounts, all transactions (except those in query which are dealt with separately) are cleared from the account and only a brought forward balance is displayed for the new period. The total creditors balance for each period is carried forward as a single balance figure. The number of balances carried forward depends upon the number of months aged debts you specify for the each Ledger. When transactions, such as receipts, are posted for a previous period's transaction, they are allocated by period number, so that the appropriate balance is reduced at the period end. The advantage of this type of accounting is its economical use of disk space. Balance forward accounting cannot be used for foreign currency accounts., or for items which have a query flag entered in the Query column (apart from finance charge invoices marked with an F).

  2. Enter the Allocation Date.

    The Allocation Date is used to age transactions on the retrospective aged debt report and statements.

    Note: If you enter a payment/receipt and choose to save and allocate, the Allocation Date here will default to either today's date or the payment/receipt date. This depends on what you have chosen as the Default allocation date in Sales Ledger Settings.

  3. The displayed window is split into two sections. The top section of the window shows the Credits (receipts) for the account and the bottom section of the window displays the Debits (invoices) for the account.

    Transactions are displayed in ascending order by transaction date. You can sort the entries by selecting a column. This changes the view from ascending to descending order or vice versa.

    The following information is displayed for viewing all transactions for both debit and credit entries that are either part allocated or have not been allocated:

    Transaction Type, Transaction Date, Due Date, Reference, 2nd Ref., (gross) Value, Outstanding value, Discount amount, Disc. Due date (highlighted if greater than the current date), Allocate amount, Query flag and payment Status (displays full for fully allocated and part for part allocated).

  4. Follow the required procedure.

Allocate transactions with settlement discounts

When allocating transactions with settlement discounts, you need to account for the net and VAT discount.

We recommend that you allocate the receipt value plus the net discount first. This leaves the VAT discount outstanding.

Note: If the settlement discount is still valid, the Disc due is highlighted yellow on the allocation screen.

There are several ways you can achieve this:

  1. When you enter the receipt, you record the amount of settlement discount taken. This is added to the receipt total and shown in the Discount column for the receipt on the allocation screen. When you allocate the receipt to the invoice, the VAT discount will be outstanding.

  2. If you don't enter the net discount on the receipt:
    1. Allocate the full value of the receipt.
    2. Double-click the Allocate column for the invoice. As long as the invoice is not part paid, this automatically reduces the allocate amount by the VAT discount, leaving the net discount as the Difference.
    3. When you save the allocation, you can choose the write off the difference as discount.

  3. Enter and allocate a receipt from the allocation screen;
    1. Select the invoice to pay.
    2. Click Receipt. As long as the invoice is not part paid, the receipt amount (cheque value) is automatically reduced by the VAT and net discounts. The net discount amount is added to the receipt.
    3. Click Save. The receipt and invoice are allocated leaving the VAT discount outstanding.

If you use the Auto Allocation option, the Allocate amount is automatically reduced by the VAT discount as long as:

  1. The settlement discount period is still valid. (The Disc Due date is highlighted.)
  2. The invoice has not been part paid.
  3. The Settled Immediately option has not been selected on the invoice.

If the settlement discount is no longer valid, the full invoice value is allocated.

Note - information

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