If a payment is added within your Accounts Receivable, but it is not allocated to an invoice, then the customer's outstanding amount will not be reduced by the amount paid. This can occur when payments are added manually to Operate, for instance.
In order to ensure that the outstanding amount is reduced, the payment needs to be allocated to an existing invoice.
To allocate an existing payment to an invoice:
- Log into Operate.
- In the main menu, select Invoicing > Accounts Receivable.
- Find the customer for whom you need to allocate the payment. Use the Filter box to easily find them by name.
- On the Accounts Receivable screen, see the Transactions section.
- Here is whwre you need to find the payment you need to allocate. It will have a "Payment Received" button, as well as a date, the paid amount on credit and the payment method. You can use the filters at the top of the list to find the payment easier. Read more or Watch a Video Tutorial about using the Accounts Receivable Module.
- Click the 'Payment Received' button. This will allow you to edit the payment.
- The Payment screen will show you the details of the transaction - you should see the paid amount, as well as the unallocated amount. If no part of this payment has been previously allocated to an invoice, then the two amounts should be the same. Otherwise, the unallocated amount should be lower than the paid amount. The unallocated amount is what you can use for an invoice now.
- You can allocate the full unallocated amount or part of it. If you opt for a partial allocation, the rest of the amount will remain unallocated and will be available to allocate further, to another invoice, using the same process described in this guide.
- Scroll through the Payment screen to see the list of available transactions to allocate to. Find the invoice you need to allocate to and enter the amount you need, or click 'Pay in full'. Below are some example situations you might need to cover.
Allocating a full outstanding amount
- For example, if you have a payment that covers an invoice in full and you want to allocate it, simply click 'Pay in full' next to the invoice or enter the amount into the corresponding field.
Allocating a partial outstanding amount
- If your unallocated amount is lower than the outstanding amount, then you can allocate the full unallocated amount to the invoice - your unallocated amount will be £0 while the invoice will still have the remaining outstanding amount, which can be reduced with a new payment allocation, using the same process.
Using a portion of the unallocated amount
- If your unallocated amount is higher than the outstanding amount, then you can pay the invoice in full by clicking the corresponding button or entering the amount. The unallocated amount will now show the remaining sum, after the allocation. (Initial unallocated amount minus allocated amount). The outstanding amount in this case should be £0.
- Click OK when you are ready. Whenever your customer will want to pay for this invoice via any method (including through the Portal), they will see the new invoice balance amount, which will be the total initial amount minus the allocated payment.