Allocate existing transactions using Account Allocation

Summary

Learn how to use Account Allocation to allocate existing payments, invoices and credit notes in Sage Accounting.

Description

Use Account Allocation to match invoices, payments and credit notes on a customer or supplier account. The Account Allocation screen shows all outstanding and unallocated transactions for that account.

When allocating transactions, select the invoices, payments on account or credit notes you want to match.

TIP:

The selected transactions need to balance, with a Left to Allocate value of zero. For more information, read our article to understand Account Allocation.

Resolution

Allocate existing transactions

Go to Contacts and select Customers or Suppliers.
Open the relevant contact record by selecting it.
Select Manage, then Account Allocation.
Use the checkboxes to choose which payments or credit notes to allocate to invoices.
▼ What happens when selecting a transaction?
- When you select an Invoice (Inv) the Left to Allocate amount increases
- When you select a Credit note (Crn) or payment on account (On Acct) the Left to Allocate amount decrease
To save the allocation, the Left to Allocate value needs to be zero. If the invoice and payments don't match, you can part-pay the invoice or allocate part of the payment or credit note.

For more guidance, go to when left to allocate isn't zero.
Ensure the Left to Allocate value is zero.
Select Save.

When left to allocate isn't zero

Left to Allocate shows the difference between the value of the selected invoices, and the value of the selected payments or credit notes.

If Left to Allocate is positive:

The payments and credit notes don't fully cover the invoices. To save the allocation, either:

Select more payments, or credit notes, or
Reduce the amount allocated to the invoice

To reduce the amount allocated to the invoice, select the pencil icon on the invoices. Update the Amount to Pay value to reflect how much of the invoice you want to pay. You can adjust multiple invoices if needed.

▼ See an example

If the payments or credit notes selected total £200 and the invoices total £250, you must reduce the invoice amount by £50.

Select the pencil icon on one or more invoices and change the Amount to Pay. Reduce by £50 in total.

You can reduce one invoice by £50 or split the reduction across several invoices, as long as the total equals £50.

If Left to Allocate is negative:

The payments and credit notes exceed the invoices. To save the allocation, reduce the amount allocated from the payment or credit note. Any remaining value stays available for future allocations.

To reduce the amount allocated from the payment or credit note, select the pencil icon on the payment or credit note. Update the Amount to Pay to reflect how much of the transaction you wan to use.

▼See an example

If the payments or credit notes total £300 and the invoices total £250, you must reduce the allocated payment amount by £50.

Select the pencil icon on the payment or credit note and change the Amount to Pay. Reduce it so the total reduction equals £50.

You can reduce one payment by £50 or split the reduction across multiple payments, as long as the total equals £50.