11.5.2. Allocation Processes

Reallocation

Reset Allocations

The Reset Allocations process, located in the Open Items menu, is used to delete payment allocations. When an allocation is deleted, all the associated accounting transaction will be deleted. If keeping records for the deleted allocation is preferred, we recommend that you use the Document Action: "Correct" button in the View Allocations window instead. Before running the process you can specify the following parameters:

• Business Partner Group, Business Partner, Account Date, Document Type - selection filters for the allocation;

• Allocation - select the allocation that will be deleted;

Deleting an allocation is not possible for the following:

• documents in closed calendar periods

• documents in the Due Tax declaration

Auto Allocation

The Auto Allocation process, located in the Open Items menu, is used to reallocate payments for which the Reset allocation process was run. Before running the process you can specify the following parameters:

• Organization, Business Partner Group, Business Partner - selection filters for the documents that will be reallocated;

• AP-AR - selection filters for the documents that will be allocated:

  • Receivables - customer invoices

  • Payables - vendor invoices, due withholdings, debts to pay;

  • Receivables and Payables - all available documents;

  • Allocate Oldest First - check if allocation should start from the oldest documents, until there is either no payment or no document left. If not checked, the process will follow the rules described below.

When running the auto allocation process, the system will check payments and documents, and allocate the in the following order:

• 1. Any payment associated to an invoice will be linked to that invoice. This represents the situation when the invoice is selected in the Payment window.

  2. Any invoice associated to the payment preparation is linked to that payment.This represents the situation when the payment preparation is done to select the vendor invoices that need to be paid.

  3. If the business partner's balance is 0, then the process will link all the invoices to an unallocated payment. This could represent the situation when the payments were manually allocated to invoices in the Payment Allocation window.

  4. Any invoices/payments with the same value that have not yet been allocated (according to the previous points) will be allocated. This could represent the situation when the payments were manually allocated to the invoices using manual allocation, or when there are both an invoice and a credit memo for the same value.

  5. If the Allocate Oldest First checkbox was selected, the system will keep allocating payments to invoices until there is no payment or invoice left. The result can be either a partially allocated payment or invoice, or unallocated payments and invoices.

Starting with v15.03 the process will also allocate partially allocate payments.

Write-Offs

Receivables Write-off

The Receivables Write-off process, located in the Open Items menu, is used to write off small differences of receivables invoices. These differences will be marked as paid and will be posted in the Difference Account. Starting with version 13.09, the allocations resulting from the process will be posted as such:

• when writing off customer invoices, the difference will be posted on the Difference Account defined at Business Partner Group and Business Partner levels in the Write-off Receivable field.

• when writing off vendor invoices, the difference will be posted on the Difference Account defined at Business Partner Group and Business Partner levels in the Write-off Payment field.

Before running the process you can specify the following parameters:

• Organization, Business Partner, Business Partner Group, Invoice, Date Invoiced, Currency - selection filters for the invoices for which the process will be run;

• Maximum write-off per Invoice - fill in the maximum sum that can be written off (e.g. 5 RON);

• AP-AR - invoice selection filter:

  • Receivables & Payables - the process will run for both customer and vendor invoices;

  • Receivables Only - the process will run for customer invoices only;

  • Payables Only- the process will run for vendor invoices only;

• Account Date - enter the date when the writing-off will be done (usually the end of the month);

• Create Payment:

  • Selected - it creates the payment/receipt corresponding to the invoices that meet the previously selected criteria;

  • Not Selected - it does not create a payment/receipt, only an allocation;

• Bank Account - select the bank account used for the adjustment;

• Simulation - select to only list the invoices that would be adjusted by the process;

Press Start to run the process with the selected parameters. The resulting allocations will have the From Invoice Write-off checkbox selected, irrespective of whether a payment was created or not.

Payments Write-off

The Payments Write-off process, located in the Open Items menu, is used to close unallocated amounts from payments/receipts. The process generates payments/receipts with opposite sign of unallocated amounts and allocates them to the payments/receipts involved in the process. Thus, through the obtained allocation, the respective payments/receipts will no longer be available for further allocations. It is recommended you use a collector "bank" account for these adjustments and an associated expense account that will absorb the resulting differences.

Before running the process you can specify the following parameters:

• Business Partner, Business Partner Group, Transaction Date, Payment - selection filters for the payments for which the process will be run;

• group, otherwise this is left empty (as is most common);

• Max Write-off Amount - indicates an absolute value ceiling so that only unallocated amounts under smaller than it can be written off by the process (usually less than one: 0.01);

• AP-AR - indicates the types of documents for which the process will run:

  • Receivables & Payables - the process will be run for both payments and receipts

  • Receivables Only - the process will run for receipts only;

  • Payables Only - the process will run for payments only;

• Account Date - indicates the date of the adjustment document (i.e. the resulting payment/receipt);

• Bank Account - choose the collector account for this type of operation;

• Simulation - if selected, the process will only display its possible results;

Press Start to run the process with the selected parameters. The generated payments/receipts are taken from bank statement corresponding to the collector bank account defined for these adjustments.