Contents

Cash Allocation

Caroline Buckland Updated by Caroline Buckland

The process

Automatic Allocation takes place when cash is entered onto the customer’s account during data entry, and on update, the cash is matched to invoices via the routine nominated on the customer account controls.

Semi-automatic Allocation takes place in Data Entry when cash is entered onto the customer account and the invoice to which the cash should be allocated is nominated.

Manual Allocation takes place in the Cash Allocation function of Accounts Receivable. Here, cash and invoices that have already been posted onto the customer account can be matched together manually.

This section will take you through manual allocation.

A screen is available to manually allocate both debit and credit transactions.  It is also possible to de-allocate previously matched transactions.

1. Cash Allocation Header

To access the allocation screen: Accounts Receivable-AR Processes-Cash Allocation-Allocation. 

Ledger/Account: Enter the ledger and customer number for cash allocation

Location code: location you are allocating the cash to

Allocate To: Alternatively; if you have an invoice number, then enter this here and the customer number will be returned

The Cash Allocation header can also be reached via the Unallocated Cash Prompt. (Main Menu-Accounts Receivable-Cash Allocation-Unallocated Cash Prompt and then select the transaction you wish to allocate and press the allocate button.)
If using the unallocated cash prompt the header details are pre-populated

When you have selected your customer account then click on the ‘Go List’ button to go to the Allocation screen.

2. Cash Allocation Screen

The sum of Allocation Values must balance to zero before you are able to update the allocation.

The Cash value at the top of the screen will display the current allocation value as you select your allocations.

All outstanding transactions for a customer account are listed when you click ‘Go List’

‘P’ to Allocate:  enter ‘P’ to pay against each transaction to be matched.

Allocation Value: enter the total amount of the transaction to be matched.

Note that if this field is left blank then the system assumes that the Allocation Value is the outstanding amount on the transaction.

Credit balances e.g. cash have a negative sign Debit balances e.g. invoices have a positive sign.

When entering an Allocation Value for a credit balance it must have a minus sign. 

Press the Update button once all transactions have been allocated.

1. Cash De-Allocation

The process

A screen is available to manually de-allocate both debit and credit transactions.

1. Cash Allocation Header

To access the allocation screen: Accounts Receivable-AR Processes-Cash Allocation-De-Allocation

Note that Deallocation screen is the same as the Allocation screen. However; when you select the Deallocation option at the menu the system knows it is in Deallocation mode.

Ledger/Account: Enter the ledger and customer number for cash allocation

Location code: location you are de-allocating the cash from

Allocate To: Alternatively if you have an invoice number, then enter this here and the customer number will be returned

When you have selected your customer account then click on the ‘Go List’ button to go to the Deallocation screen.

 2. Cash De-Allocation Screen

The sum of Deallocation Values must balance to zero before you are able to update the deallocation.

The Cash value at the top of the screen will display the current deallocation value as you select your allocations.

When entering an Allocation Value for deallocation then the sign must be the opposite of the original value.

For example, in the deallocation, pictured the deallocation amount for the cheque is120.00 and the deallocation amount against the invoice is -120.00.

All outstanding transactions for a customer account are listed when you click ‘Go List’.

‘P’ to De-Allocate:  enter ‘P’ to pay against each transaction to be unmatched.

Allocation Value: enter the total amount of the transaction to be unmatched.

Press the Update button once all transactions have been deallocated.

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