How to allocate credit notes and payments on account

How to use Account Allocation to apply standalone credit notes or payments to one or more invoices in Sage Accounting.

Use the Account Allocation page to allocate outstanding credit notes or payments on account to invoices for a customer or vendor.

You can allocate only outstanding transactions.
Record receipts or payments separately when money is received or paid out.

To record receipts, see the article How to record customer receipts.
To pay bills, see the article How to record vendor bill payments.

If you allocate a transaction incorrectly, unallocate it before reallocating. For details, see the article How to unallocate an invoice and credit note.

As you allocate transactions, Left to Allocate shows the remaining balance. Allocate the full amount before saving.

1. Go to Contacts, then open the required customer or vendor.
2. On the Manage menu, select Account Allocation.
3. Select transactions using one of the following options:
   • Select the top-left checkbox to allocate all transactions
   • Select individual checkboxes to allocate specific transactions
4. To partially allocate a transaction, click Paid, enter the amount in Amount to Pay, then click Save.
5. Confirm Left to Allocate shows zero, then click Save.

When you allocate multiple transactions, Sage Accounting sets the allocation date to the most recent transaction date.

When you create a credit note from an invoice using More, New Credit Note, Sage Accounting applies the most recent transaction date.

If the credit note date is earlier than the invoice date, Sage Accounting uses the invoice date for allocation.