11.5.1. Payment Allocations

Bank Payment Allocations

The Payment Allocation window, located in the Open Items menu, is used to allocate payments to documents. The following fields are available:

• Match to - document type that will be allocated to payments: Invoice, Calculated Withholdings, Debt to payment;

• Business Partner - enter the business partner on the invoice and payment;

• Date - the allocation date. Automatically updated when selecting the payments and documents with the last date of the two;

  • Currency - currency used on the allocated documents. Depending on the Multi - Currency field from the More filters section it will have the following role:

    • if multi - currency is not checked, it will act as a selection filter for the documents displayed;

    • if multi - currency is checked, this will be the base currency used for exchange operations and will be used on the allocation records;

More Filters section:

• Invoice No - filters invoices displayed by document number (e.g. "%100%" - only invoices with their document number containing "100" will be displayed);

• Multi-Currency - check when generating allocations for documents with different currencies;

• Pro Forma - if checked, only proforma invoices will be displayed;

After pressing Search, depending on the available selection filters, the Payment and Document sections will be completed:

Allocating payments to documents is done by selecting the lines from the Payment section and the lines from the Document (invoice, withholding, debt to payment) section. We recommend that you generate distinct allocations for each Document-Payment allocation!

The allocated amounts can be edited on the Applied Amount column for payments and documents. Starting with v13.05 the allocated amount is determined automatically.

• Difference - difference between the sum of selected payment amounts and the sum of selected document amounts. The allocation can be generated only if the difference is 0;

• Automatic Write-Off - for simple document - payment allocations, the Write-Off column is automatically completed with the difference between the document amount and the payment amount;

• Process button - press to generate the document - payment allocation

  • • will not be active if the value in the Difference field is not 0;

    • the generated allocations can be viewed in the View Allocation window, located in the Open Items menu;

Multi-Currency Allocations

In the case of payments/receipts with a currency different than that of the invoice(s), you need to take into account the following:

• • Allocations must be done in the currency of the invoice - it is recommended you do the conversion from the payment currency to the invoice currency and not the other way around;

    • the Currency filter will be filled with the currency of the invoice(s) we wish to allocate a different currency payment to;

    • select the Multi-Currency checkbox;

  • The selected payments are converted into the indicated currency on the payment date using the exchange rate type of the payment!!!

    • if the exchange rate has not been defined by the above rule, then the payments will not be displayed at all;

  • Invoices are also converted, but the resulting amounts will be the same with the original ones (since they are converted to their own currency);

    • however, if you choose a different currency than the one on the invoice, then the invoice will be converted to the selected currency, on the invoice date, at the exchange rate type on the invoice!!!

    • if the exchange rate has not been defined by the above rule, then the invoices will not be displayed at all.

The allocation is only generated if the difference is equal to 0 (the same rules as in the single-currency case are followed).

The generated allocation will have:

• • date - either the biggest out of those of the selected documents, or the date selected by the user.

    • Note: For multi-currency allocations, it is not recommended you manually modify the date, otherwise the calculations used to determine exchange rate differences will be influenced.

  • currency - the one indicated in the filter; it is recommended it be the currency of the invoice(s) involved in the allocation.

  • the value used for the posting of the allocation are determined based on the allocation currency, at the date of the allocation, with the exchange rate type from the payments!!!

The currency exchange differences are posted using the accounts entered in the Unrealized Gain Acct and Unrealized Loss Acct in the General section of the Defaults tab in the Accounting Schema window.

When allocating and invoice to a payment in currencies other than the base currency used, the exchange rate used will be determined by the most recent date on the two allocated documents.

Cash Payment Allocations

The Matching Cash-Invoice window, located in the Open Items -> Cash Management menu, is used to allocate cash payments to unpaid invoices. The following fields are available:

• Search Mode:

  • "Matched" - will display allocated invoices;

  • "Not matched" - will display unallocated invoices;

• Date Invoiced, Sales Transaction - selection filters for the invoices displayed;

• Statement Date - selection filter for the cash journal lines displayed;

• Organization, Business Partner - selection filters for the both cash journal lines and invoices;

• Allocation Date - date that will be used on the allocation;

After pressing the Search button, depending on the available search filters, the Invoice section will display a list of invoices. Once an invoice is selected, the Cash section will display a list of cash payments. The allocation is made between the selected invoice and cash payment:

• Difference - indicates the difference between the open invoice amount and the cash payment amount. An allocation can be generated only if the difference is 0;

  • Note: to partially allocate an invoice or payment, edit the values under the Applied Amount columns;

  • Process button - press to generate the allocation:

    • will not be active if the value in the Difference field is not "0"

    • the generated allocations can be viewed in the View Allocation window, located in the Open Items menu;

  • Delete button - is used to delete an existing allocation between a cash payment and invoice:

    • Search Mode = "Matched";

    • select the invoice in the Invoice section;

    • select the allocated payment in the Cash section;

    • press the button to delete the allocation.