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Allocation

About allocation

Use this to allocate existing credits (receipts) to outstanding debits (invoices). You can allocate the full or part paid amount.

You can also:

• Create and allocate a receipt for a selected outstanding debit transaction.

• Add or remove queries on individual transactions if they are in dispute.

• Write off allocation discrepancies as discount.
• Re-allocate receipts.
• Cancel (reverse) the allocations, provided you have not saved them.

To unallocate or revise the allocation details once you have saved them, use Amend Allocation.

Outcomes

If you are entering and allocating a new receipt:

• The customer's account balance is updated (decreased) by the value of the receipt or receipts posted (including discount if appropriate).
• The bank account (for the balance sheet) in the Nominal Ledger and in the Cash Book, if used, is debited with the value of the receipt.
• The discount allowed account (for the profit and loss) in the Nominal Ledger is debited with the value of the settlement discount, if included.
• The sales control account (for the balance sheet) in the Nominal Ledger is credited with the value of the receipt plus any discount.

If you are allocating foreign currency transactions and using foreign currency revaluation:

• The exchange rates entered on the transactions allocated together are compared.
• If there is a difference, the exchange gain or loss is calculated and posted to currency adjustments and debtors control accounts in the Nominal Ledger.

If you are allocating existing transactions:

• The balance of a customer is not affected.
• The Nominal Ledger is not affected.

Once transactions have been fully allocated, they can be removed when a period end is run (if they are older than the number of months you have specified to Keep transactions for in the Sales Ledger settings Customer Defaults tab).

To allocate credits to debits

Open: Sales Ledger > Enter Transactions > Allocation.

1. Select the customer account you want to allocate receipts for.

You cannot allocate receipts for customers whose account type is balance forwardFor Balance Forward accounts, all transactions (except those in query which are dealt with separately) are cleared from the account and only a brought forward balance is displayed for the new period. The total creditors balance for each period is carried forward as a single balance figure. The number of balances carried forward depends upon the number of months aged debts you specify for the each Ledger. When transactions, such as receipts, are posted for a previous period's transaction, they are allocated by period number, so that the appropriate balance is reduced at the period end. The advantage of this type of accounting is its economical use of disk space. Balance forward accounting cannot be used for foreign currency accounts., or for items which have a query flag entered in the Query column (apart from finance charge invoices marked with an F).

2. Enter the Allocation Date. This defaults to the system date.

   The Allocation Date is used to age transactions on the retrospective aged debt report and statements.

3. The displayed window is split into two sections. The top section of the window shows the Credits (receipts) for the account and the bottom section of the window displays the Debits (invoices) for the account.

   Transactions are displayed in ascending order by transaction date. You can sort the entries by selecting a column. This changes the view from ascending to descending order or vice versa.

   The following information is displayed for viewing all transactions for both debit and credit entries that are either part allocated or have not been allocated:

Transaction Type, Transaction Date, Due Date, Reference, 2nd Ref., (gross) Value, Outstanding value, Discount amount, Disc. Due date (highlighted if greater than the current date), Allocate amount, Query flag and payment Status (displays full for fully allocated and part for part allocated).

4. Follow the required procedure.
Auto allocate
Use this if you want to allocate all your transactions automatically.
1. Click Auto Allocate.
2. The total credit entries (receipts) are added together first. All debit entries (invoices) are allocated in date order (oldest first) until the total of the debit values matches the credit values.
3. If the total of the credits (receipts) is less than the total of the outstanding debits (invoices), the transactions are allocated until the debit value matches the credit value. Any amount remaining is part allocated.
4. If the total of the credits (receipts) is more than the total of the outstanding debits (invoices), the credit items are allocated until the credit value is equal to the total outstanding debit (invoice) value. All outstanding invoices are then fully allocated.
Manual allocation

Use this if you want to select the required entries from the list of credits and debits and confirm the amount to allocate.

1. Select a credit (receipt) item.

2. Click Allocate. The total amount of the receipt appears in the Allocate column.

   If you want to part allocate the receipt, enter the amount you want to allocate.

If you are only allocating one credit item (receipt) the reference of that item is recorded as the second reference of the debit item (invoice) if the second reference of the invoice is blank.

3. Select a debit (invoice) item.

4. Click Allocate. The total amount of the invoice appears in the Allocate column.

   If you are allocating several entries, repeat until the difference value is zero.

5. Click Save.

If you attempt to save the allocation entry without the difference value at zero a warning is displayed.

6. If the difference value is not zero you can:
• Allocate more items.
• Change allocated amounts for the credits or the debits in the Allocate column.

• Choose to write off the amount as a discount.

  This results in a posting to the discount nominal account and bank nominal account as well as updating the allocation entry.

Set or remove a query flag

Use this if you want to assign or remove a query flag on a transaction. Placing a query prevents further actions on a transaction until you remove the query. (This is different from applying an On Hold flag, which applies to the whole account).

Sage 200 automatically assigns the following query flags in the Sales Ledger:W for bad debt write off and F for finance charges. Other than these characters you can apply a character to the transaction that is meaningful to you.

1. Select the transaction you want to query.
2. To set a query, enter the character you want to use as query flag in the Query column (do not use W or F).

3. To remove a query, clear the query flag column.

   You cannot remove W or F flags.

Create and allocate a sales receipt
Use this to choose an outstanding invoice that you want to pay and create and allocate a corresponding receipt. The customer and bank account you choose to record the receipt must operate in the same currency.
You cannot record a receipt for any transactions that are queried apart from finance charge invoices (queried with an F).
1. Select the debit item (invoice) that you want to pay.

2. Click Receipt.

   The receipt transaction entry window appears.

You can only enter a receipt for one invoice at a time.

3. Select the Bank account to be used; this must operate in the same currency as the customer account record.
4. Enter the Cheque value.
5. Click Save to return to the Allocations window.
Reverse allocations

Use this to cancel the allocations you have made before saving the session.

1. To cancel your allocations, click Reverse.
2. Choose whether to reverse:

   • Debit and Credit

     This clears all the allocations made.

   • Debit only

     This clear the allocations on the debit (invoice) items only. Any credit (receipt) items retain their allocated value.

Once saved, you cannot use the Reverse option to clear the allocated transactions. If you need to the allocations you have saved, use Amend Allocations.