Cadzow Knowledgebase

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Allocating Receipts & Payments

Normally when a receipt is processed, it is allocated to some or all of the outstanding invoices. However, there are circumstances when it is not possible to allocate the full amount:

  • The receipt is a prepayment/deposit and the invoice has not been entered yet;

  • The operator does not know which invoices are being paid;

  • Or a combination thereof.

Therefore there is a need to allocate receipts to invoices after the event.

Printing a List of Unallocated Receipts

  1. Click the Accounts Receivable tab.

  2. Click Allocate Unallocated Receipts.

  3. Click Print List of Unallocated Amounts.

Allocating Unallocated Receipts

  1. Click the Accounts Receivable tab.

  2. Click Allocate Unallocated Receipts.

  3. Choose the Department.

  4. Choose the Organisation.

    The system will show all receipts and invoices which are partially or fully unallocated.

  5. Choose an allocated receipt from the Choose the Unallocated Amount drop-down list.

  6. Enter the amount to be allocated against the appropriate invoices.

    It is possible to split the amount to be allocated against different invoices, but the amounts being entered must be less than or equal to the receipt value selected.

  7. Click Allocate.

    The system prompts: Are you sure you wish to process this allocation?

    Choose Yes.

  8. The screen closes and returns you to the Accounts Receivable tab.

Fixing Unallocated Receipt/Reverse Receipt Pairs

If an unallocated Receipt is reversed, the Reverse Receipt will also be unallocated, and this creates a pair of receipts which add to zero but float around in the system as unallocated.

To fix this, use the method described above to allocate both receipt entries to the same invoice: once for the positive receipt, and once for the negative receipt. Be sure to allocate both receipts to the same invoice.

If there are no unallocated invoices available to allocate the receipts to, click Show fully paid transactions. The system now shows all the customer's invoices. Allocating an unallocated receipt/reverse receipt pair is simply a matter of choosing an invoice to allocate them to; it does not particularly matter which. But a reasonable practice is to choose the most recent invoice.

Note that when you allocate the second receipt, the invoice you allocated the first receipt against will automatically appear in the unallocated list since it has now been either underallocated or overallocated and its outstanding balance is no longer zero. So you only need to use Show fully paid transactions once. When the second receipt is allocated to it, its balance will return to zero.

If the customer has no invoices, and the receipt/reverse receipt pair is actually a correction entry against an inactive customer, create a zero invoice for the customer. You may find it convenient to create a special stock code for this purpose — define it as Comment and the item will not appear in any reports.

NB. This article applies also for allocating payments to purchases in Accounts Payable.

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