Allocate Customer Payment or Credit Note

Allocate Customer Payment or Credit Note

This guide will help you allocate customer payments or credit notes in our ERP system. Follow these steps to efficiently manage unpaid invoices and credit notes.

1. Overview

Allocating customer payments or credit notes ensures that all customer transactions are correctly applied to their respective invoices. This process helps maintain accurate financial records and customer balances.

2. Allocation of Customer Paid Amount

This section covers the steps to allocate a customer's paid amount that has not been fully applied against invoices.

1. Access Unapplied Payments:
   • Click on the link to view all unapplied amounts.
   • A list of all unapplied customer payments will be displayed.
2. Start Allocation:
   • Click on the "Allocate" icon on the right side of the desired payment.
   • The allocation user interface will appear, showing all outstanding invoices for that customer.
3. Allocate Payment:
   • Click "All" to apply the full invoice amount.
   • Click "None" to clear the allocation.
   • If the available amount is less than the outstanding invoice amount, the system will automatically apply up to the maximum available amount against the invoice.
   • Alternatively, manually enter the amount in the "This Allocation" box.
4. Process Allocation:
   • Once the amount is correctly applied, click the "Process" button to complete the allocation.

3. Allocation of Customer Credit Notes

This section covers the steps to allocate customer credit notes that have not been fully applied against invoices or payments to customers.

1. Access Unapplied Credit Notes:
   • Click on the link to view all unapplied credit notes.
   • A list of all unapplied customer credit notes will be displayed.
2. Start Allocation:
   • Click on the "Allocate" icon on the right side of the desired credit note.
   • The allocation user interface will appear, showing all outstanding invoices for that customer.
3. Allocate Credit Note:
   • Click "All" to apply the full invoice amount.
   • Click "None" to clear the allocation.
   • If the available amount is less than the outstanding invoice amount, the system will automatically apply up to the maximum available amount against the invoice.
   • Alternatively, manually enter the amount in the "This Allocation" box.
4. Process Allocation:
   • Once the amount is correctly applied, click the "Process" button to complete the allocation.

4. Tips and Best Practices

• Ensure all customer payments and credit notes are reviewed regularly to avoid unapplied amounts.
• Double-check the allocation amounts before processing to prevent errors.
• Use the "All" and "None" options for quick allocation when dealing with multiple invoices.

5. Troubleshooting

• If the allocation interface does not display, ensure your browser is compatible with the ERP system.
• For any discrepancies in amounts, verify the payment or credit note details with the customer records.

Date of Allocation

The "Date of Allocation" is a crucial aspect of managing customer payments and credit notes in our ERP system. This section highlights important considerations and best practices for selecting the allocation date.

Key Points:

1. Purpose of the Allocation Date:
   • The date selected in the date picker is used to record the General Ledger (GL) transaction of the allocation.
   • It is important to note that the exchange rate used to calculate the variance will be based on the difference between the invoice date and the date the payment was received, not the allocation date.
2. Exchange Rate Variance Calculation:
   • Each allocation process triggers the system to calculate the exchange rate variance.
   • These variances are recorded in the GL.
   • If the same allocation is reviewed (even without any changes) and the "Process" button is clicked, a new variance will be recorded in the GL.
   • To avoid unnecessary variances, do not click the "Process" button unless you are sure of the allocation details.
3. Caution with the "Process" Button:
   • The "Process" button should not be clicked loosely. If unsure, cancel the process and click on the "Back to Allocation" button.
   • This prevents recording unintended variances in the GL.
4. Changing the Allocation:
   • If you need to change the allocation amount or date, inform the finance department.
   • The finance department should reverse the previous variance amount via a journal entry to avoid double counting.
   • Proper communication ensures accurate financial records and prevents discrepancies.

Best Practices:

• Double-Check Details: Always review the allocation details before clicking "Process" to prevent unintended GL entries.
• Communication with Finance: Inform the finance department of any changes to the allocation to ensure accurate variance reversal.
• Use the Date Picker Carefully: Select the correct allocation date to ensure accurate GL transactions and financial reporting.