What is Account Allocation? Use Account Allocation to match existing transactions on a customer or supplier account without recording a new receipt or payment. This helps you clear outstanding balances by allocating invoices, payments on account and credit notes to each other. When do I use it? Use Account Allocation when you already have the transactions recorded in Sage Accounting but need to match them together. For example, you can allocate a Payment on Account to an Invoice. Or, apply a Credit note, partially pay an Invoice to clear outstanding balances on Customer or Supplier accounts. Understanding the Account Allocation screen The Account Allocation screen displays outstanding transactions for the selected customer or supplier. See an explanation of the terms below. ▼ Account allocation terms explained | Terms | Description | | Invoices (Inv) | Invoices show as positive values and you can allocate them to credit notes or payments on account. | | Payments on Account (On-Acct) | Payments on account show as negative values and you can only allocate them to invoices. | | Credit notes (Crn) | Credit notes show as negative values and you can only allocate them to invoices. | | Checkboxes | Each transaction has a checkbox. Select the checkbox of the relevant transactions to allocate them together. | | Pencil icon | The pencil icon allows you to complete part payments and allocations. By default, selecting the checkbox uses the full amount of the transaction. Selecting the pencil allows you to change how much of the transaction you use. | | Left to Allocate | When saving an allocation, the Left to Allocate value has to be zero. This ensures you're allocating the same value of credits and debits. | | Total column | The total transaction value before you make any allocations or payments. | | Outstanding column | The value left outstanding after payments and allocations. This is a dynamic field that updates as you select transactions. | What happens when I save an allocation? Once allocated: - The invoice shows as paid or part-paid and the outstanding balance updates
- The balance of the customer or supplier account updates
- If you use the VAT Cash Accounting scheme, the value updates on your next VAT Return
To identify unallocated sales receipts and supplier payments, use the unallocated receipts and payments report. |