11.05. Allocations

Allocations (also known as matchings) between payments or receipts and invoices, orders, withholdings and debt to payments are generated in the following situations:

• • manually - through the Payment Allocation or Matching Cash-Invoice windows;

  • automatically:

    • when the allocated documents are indicated when entering the payment;

    • when the payments are generated through the payment approval workflow

    • then the payments are generated by voiding or correcting an existing document;

Allocating payments to invoices with multiple due dates or to invoices with "Scheduler" type payment terms is described below:

• • when defining the payment, you need to indicate the invoice and the due amount for which the payment is made;

  • if a payment covers multiple due amounts:

    • without indicating due amounts - in this case the system will select the due amounts automatically by date;

    • through the Payment Allocation window - each due date will appear as a selectable line to which the payment can be allocated.

Viewing Allocations

The View Allocations window, located in the Open Items menu, is used to view the records generated when allocating payments to invoices. The records in this window are read only and processed. The following fields are available:

• Transaction Date, Account Date, Currency - information taken from the payment;

• Approval Amount - amount not paid, due to a discount or write-off;

• Description (system maintained) - is determined by the allocation source;

• Document Status:

  • Initial Status: "Completed" (system generated document);

• Document Action button:

  • • "Void" / "Reverse" -> Document Status: "Voided" / "Reversed"

      • will cancel the allocation and its accounting effects by generating a new allocation document with opposite amounts, with the current document date (Reverse) or the and with identical date (Void) and with the "Reversed" document status;

      • the corresponding accounting transactions will also be cancelled;

    • the payment will no longer be allocated to the document;

  • "Close" -> Document Status: "Closed"

    • permanently closes the allocation;

    • no other document action can be applied;

The Allocation Line tab displays the documents to which the payment was allocated. The following fields are available:

• • Amount - total amount allocated to the document;

  • Discount Amount - discounted amount, as indicated on the payment;

  • Write-off Amount - amount written off as indicated on the payment;

  • Under/Over Allocated Amount - amount left unallocated or over allocated on the invoice;

In the table below indicates how the value in the Description field in the View Allocation window was generated. The value is automatically completed when the allocation is defined and can be updated using the Update Allocation Description process located in the Open Items menu (the process updates the description for allocations. Closed allocation and allocations from closed accounting periods cannot be updated).

Accounting

When transferring the payment, the organization used in the accounting transactions will be the one defined for the bank account selected for the payments. The posting generated from allocations is described below:

• • Receipt

    • Debit: Bank

    • Debit: Discount Expenses

    • Debit: Differences

    • Credit: Receipt

  • Cash Receipt

    • Debit:Cash Transfer

    • Debit:Discount Expenses

    • Debit: Differences

    • Credit: Receipt

  • Prepay Orders Receipt

    • Debit: Customer Prepayments

    • Debit:Discount Expenses

    • Debit: Differences

    • Credit: Receipt

  • Payment

    • Debit: Vendor Obligations

    • Credit: Discount Revenue

    • Credit: Differences

    • Credit: Bills of exchange payable

  • Cash Payment

    • Debit: Vendor Obligations

    • Credit: Discount Revenue

    • Credit: Differences

    • Credit:Cash Transfer

If commitment accounting was selected, the commitment account defined in the accounting schema will be used and the posting type will be allocation:

• • Payment

    • Debit: Commitment

    • Credit: Expense Product