Allocate credit notes and payments on account

If you created standalone credit notes or payments on account for a customer or vendor, you can use the Account Allocation page to allocate them to one or more invoices.

You can use this feature only to allocate outstanding transactions together. You cannot use it to record a payment or a receipt. If you have received any money in or are paying money out, you must record the customer receipt or vendor payment.

• Record customer receipts
• Pay a vendor bill

If you have already allocated a transaction and you need to unallocate this (for example, you allocated a credit note to the wrong invoice), see Unallocate transactions.

To allocate credit notes, invoices, and payments on account

As you allocate the transactions, the Left to Allocate field displays the amount left to allocate. This must be zero before you can save the allocations.

1. Go to Contacts and then open the appropriate contact.
2. On the Manage menu, click Account Allocation:
   • To allocate all transactions, select the check box at the top left of the list of transactions.
   • To allocate individual transactions, select the check box for each item.
   • To allocate part of a transaction to another (for example, if you want to credit part of an invoice), click the Paid box for the transaction you want to part pay, enter the value in Amount to Pay, and then click Save.
3. When the Left to Allocate field displays zero, click Save.

When transactions are allocated together for a contact the allocation date will be the date of the most recent transaction. For example, if on 6/28/2018, you allocate, and invoice dated 6/9/2018, a credit note dated 6/20/2018, and a payment dated 6/11/2018, the allocation date will be 6/20/2018.

When a credit note is created directly from an invoice (using the More, New Credit Note option) the allocation date will use the most recent date. If the credit note has an earlier date, the date of the invoice will be used for the allocation.