OVERVIEW

In this knowledge-based article, we will explain how the functionality works in Creditors Allocations. 

FUNCTIONALITY

An example of a creditor account is below for demonstration purposes for the Creditors Allocations module. 

DEBIT ACTIONS

REVERSE PAYMENT

The reverse payment option allows one to reverse a payment entry that was allocated incorrectly.

TOGGLE STATUS

Sometimes, when a specific credit is under query, you can toggle the status by clicking on this button or by right-clicking on the credit. This credit will now NOT be allocated, if “payment to oldest balances” is selected.

SHOW MATCHED PAYMENTS

This will show all the payments that were allocated to the selected Credit entry (Invoice).

SEARCH ACTIONS

SEARCH DEBITS

The Search Debits option allows one to search for debit-type transactions within the allocation screen.

SEARCH CREDITS

The Search Credits option allows one to search for credit-type transactions within the allocation screen.

In the recording below we have searched for the REFERENCE "DISCOUNT".

COMBINED ACTIONS

PAY MATCHED ENTRIES

Select a credit on the left and a debit on the right. The debit will be allocated to the credit.

REMOVE COMPLETED ENTRIES

This function will remove all allocated entries (both debits and credits) from your allocation screen.

These are not physically removed from the system, but merely made invisible during allocations.

RECALL AN ENTRY

This option will allow one to recall a previously completed entry that was removed as explained above.

CREDIT ACTIONS

OLDEST BALANCES SELECTED ITEM

The debit selected on the right of your screen, will be allocated in full to outstanding credit entries from oldest balances onward, until no amount is left to allocate.

REVERSE ALL PAYMENTS

All allocations will be reversed. Make sure that this is the correct option especially if a lot of allocations have been done because this will reverse all payments and the allocations has to be done from scratch.

REVERSE SELECTED CREDIT

All debits allocated to the selected credit will be reversed.

ALLOCATE ALL TO OLDEST BALANCE

Selecting this option will allocate all debits to all credits, from the oldest balances forward.

ALLOCATE UP TO SELECTED

All debits up to the selected credit entry will be allocated to credit entries, starting at the oldest balances.

SHOW PAID ITEMS

This will show all invoices and credit entries that the selected payment was allocated to.

The allocations are where the Creditor's Allocations are done.

This is the value that can be allocated or part allocated to one or more outstanding

This is the Outstanding status indicator column. 

Indicates whether the transaction is paid, part-paid or fully paid.

This entails that specific payments are allocated to specific invoices.

This means that a payment is marked off against an invoice.

Allocations will affect the Creditors' ageing depending on which payment amounts are allocated to which purchase amounts.

This will therefore affect the Creditors Advice Notes in that if the allocation is not done, then the amounts in the different ageing periods (30 days, 60 days, 90 days etc.) will not be affected by the payment until the allocations are made.

The total and running balance will be considered the payment immediately once the payment is made.

All the credits for that creditor will be displayed with original amounts, the outstanding amount, and a colour indicator on the transaction, indicating paid, part-paid and fully paid.

If a transaction is paid up, (outstanding column value is zero). If not paid at all (i.e. the outstanding value is equal to the amount value), the colour indicator will be yellow. If partially paid (i.e. the due value is less than the amount value), the colour indicator will be light blue.

The full amount of the debit does not have to be allocated. The value of any debits left unallocated will be highlighted beneath the word “180 Days”.

This unallocated amount can be allocated with the next debit entry.

NOTE:
Debit Allocations are done after a payment or debit transaction is processed. Payment allocations can be made to oldest balances or specific invoices or credit transactions. This feature is used to mark off which invoices are paid by the payment. If a payment is not allocated to the intended invoices then they will reflect as unpaid and will reflect an outstanding amount. If no credit transactions exist, the payment cannot be allocated and will be reflected as an unallocated debit.

HOW TO ALLOCATE

Move the highlight bar to the credit being paid. If the amount of the available debit (“to allocate” amount) is Greater than the credit (“outstanding”) being paid, press Enter or click with the left mouse button, and the highlighted credit will be paid up (the outstanding amount will become zero) and will reflect the transaction in white colour.

If a credit (purchase, JC, etc.) is already paid up, you can use the same keys to un-allocate i.e. if an entry was paid up, the entry will now be unpaid, and the amount of the credit released will become available for reallocation.

NOTE: The enter key or the right mouse button will only work when the amount to allocate is greater or is equal to the outstanding credit amount. If the amount to allocate is less then select, the part allocate option.

PART ALLOCATING (PART PAYMENTS)

If insufficient credit is available or if the amount that must be allocated is to be used then partially pay other outstanding entries. The amount of credit available will be highlighted. You may apply the full credit as part payment or enter only that portion of the credit being applied as part payment of the invoice.

ALLOCATING TO OLDEST BALANCES

To automatically allocate all available credits to the oldest credits, select the Oldest Balance button.

UN-ALLOCATING

To un-allocate a credit that has mistakenly been allocated to the incorrect invoice select the Un-allocate button once the appropriate invoice has been highlighted.

OVERPAYING / OVER ALLOCATING

The system will prohibit you from allocating credits over the outstanding unpaid credit balance.

RE-ALLOCATING DEBITS

To reallocate existing debits or unallocated debits after transactions have been posted and allocated, follow the procedures as described below. This can be done at any time. You do not have to be posting a transaction at the time, i.e. you may select Creditors Allocations just to allocate credits.

ALLOCATING / UNALLOCATED CREDITS

To allocate or re-allocated existing debits, activate the allocate button .A screen with all existing credit transactions and any previously allocated debit values will appear. Follow the previously discussed steps on how to re-allocate or un-allocate previously allocated or currently unallocated debits.

INFORMATION UPDATED

On the main transaction screen, the total amount due by the customer will be updated by the transaction entered and totals outstanding and other relevant information fields adjusted, e.g. over terms, credit limit, balance of unallocated debits etc. 

In the recording below:

We have allocated the payment located below the Payments and Other Debits form to the invoice on the left located under the Invoices and Other Creditors
below.

NOTE:
Any debits left unallocated for that Creditor will be reflected on the creditor enquiries search screen. The Creditor balance will be reflected in a red colour.