Allocating customer payments

When a customer payment (Sales Receipt journal) is entered into the accounting module it will:

  • Update the customer account balance.
  • Mark selected invoices/credits as cleared.
  • Where invoices relate to orders, those orders will be marked as paid in the orders module.

Note: Sales Receipt journals are created automatically when a user chooses to take a payment from within a Sales Order or perform a refund from within a Sales Credit, if the payment method has an appropriate bank account. Using the payment allocation process is for when you need to allocate a single receipt against multiple invoices, or for other more complex workflows.

Allocating a customer payment

Sales Receipt journals can be created in the following ways:

  • Manually within the customer payment allocation screen.
  • Using the bank matching routine.

If a payment was recorded against the original order the invoice will automatically be marked as paid in the accounting module.

How to mark an invoice or credit as paid

  1. Search for and open the customer/supplier record.
  2. Click the Allocate payment link in the Financials info box.
  3. Enter the amount to pay against the relevant invoice(s) and credit(s).
  4. To write-off an amount on any invoice or credit enter an adjustment amount and select where this balance should be posted to in accounting below the table.
  5. Select the bank account.
  6. Enter the payment date.
  7. Enter a payment reference.
  8. Check the payment total.
  9. Click Submit.

Paying invoices for sales orders

If a sales invoice is for a sales order, the order reference will be shown on the payment allocation screen. Allocating any payment against an order invoice will also create a customer payment which marks the order as paid. Normally, customer payments are created from within the order screen by choosing a payment method.

For customer payments created from the payment allocation screen in accounting, the payment method code used is the bank account nominal code chosen for the sales receipt.

Paying multiple invoices

If a customer sends a single payment to cover multiple invoices you will need to receipt a single payment to create the accounting (so that is matches up with your bank reconciliation) but also marks each invoice as paid. This is done by receipting the payment against the invoices outstanding on the customer account, rather than directly on an individual invoice.

Invoices may also be part paid by entering the amount that was paid instead of the full amount of the invoice. Where this occurs the rest of the invoice value will remain on the customer account to be paid at a later date.

The following example shows a receipt of 1900 GBP.

  • A £500 sales invoice is allocated against £500 sales credit, with no affect on the money received (boxes are green).
  • A £798 invoice is part paid by a £300 payment (box is red).
  • A £1600 invoice is paid in full (box is green).

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Allocating payments across rows

You can either type amounts directly into the "to pay now" column, or you can select rows on the left to bulk Pay or Unpay. When a row will be fully cleared, the "allocated" column shows green.

If you have an amount from a customer which you want to spread automatically across rows, you can select the rows and click Pay amount. Enter the amount into the pop-up box. The amount will be distributed across the selected rows from top to bottom. If the amount entered is greater than the total of the rows, an "on account" payment will be added for the difference.

You can filter and sort the unpaid invoices list to prioritize the ones you want to pay first at the top.

On account payments

An on account payment recognizes that a payment was made but it is not allocated against any invoices or credits. An on account payment can be allocated to invoices and credits at any time, leaving any un-utilized balance as on account until it is needed.

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How to record an on-account payment

  1. Search for and open the contact record.
  2. Click the Allocate payment link in the Financials information box.
  3. Click the Create on account payment link. If there are any existing outstanding items they will be listed, so the link can be found at the top of the screen or below the list of items.
  4. Enter the payment details into the displayed window, but enter no order number.
  5. Select the checkbox to email a receipt/remittance.
  6. Click Allocate payment .

The payment will be displayed on the Payment allocation screen and the accounting created. The payment will remain on the contact's account and can be allocated to invoices at a later date.

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