Setting up and managing payment allocations

Payment allocations let you distribute payments across one or more entries based on defined rules. This article explains how to configure and use payment allocations in Continia Banking.

Regulatory changes, such as VAT rate updates, can affect how allocations are calculated and make existing allocation entries outdated. You may also have scenarios where allocations must be reviewed before posting, adjusted after posting, or excluded from specific documents.

With payment allocations, you can:

• Preview allocations on purchase and sales invoices before posting.
• Define allocation types, including VAT-only calculations.
• Add or modify allocation entries after posting.
• Recalculate open allocation entries when allocation rules change.
• Deactivate allocation calculation for individual invoices when needed.

To create payment allocation types

Payment allocation types define how allocations behave, including whether entries can be modified or removed after posting and whether multiple allocations are allowed for the same entry.

To create a payment allocation type:

1. Search () for Payment Allocation Types, and then select the related link.
2. On the Payment Allocation Types page, fill in the following fields:
   • Code – the identifier of the allocation type
   • Description – a description of the allocation type
   • Entry Modification Allowed – whether allocation entries can be modified after posting
   • Allocation Removal Allowed – whether allocation entries can be removed
   • Multiple Allocations Allowed – whether more than one allocation can be created for the same entry
3. If you enable Multiple Allocations Allowed, note the following:
   • You can create partial payments with different due dates.
   • The original entry must have a due date later than the last allocation entry.
   • If due dates are incorrect, the entries appear highlighted in the FactBox, and posting will fail.

To recalculate open allocation entries

When you change allocation type parameters, you can recalculate all open allocation entries to apply the updated values. For example, if allocation entries were originally calculated using a VAT rate of 19 percent and the rate changes to 20 percent, you can recalculate the open entries so that they use the updated VAT rate.

To recalculate open allocation entries:

1. Search () for and select Payment Allocation Types.
2. On the action bar, click Actions > Update Allocations.

To set up payment allocations for account types

You can assign a payment allocation type to vendor or customer accounts so that allocations apply automatically to the relevant entries.

To set up payment allocations for account types:

1. Search () for and select Banking Export Setup.
2. On the action bar, click Manual Setup.
3. Click Payment Allocation. Alternatively, if you want to set up payment allocations for a specific vendor, on the vendor card, on the action bar, click Related > Vendor > Payment Allocations
4. On the Payment Allocations page, fill in the following fields:
   • Account Type - automatically populated based on your selection in the previous step.
   • Account No. - specifies the account number associated with the selected account type.
   • Payment Allocation Type Code - specifies the payment allocation type to use. You can set up different types on the Payment Allocation Types page.
   • Description - provides a brief description of the payment allocation type for reference.
   • Calculation Type - defines how the payment allocation is calculated. Options are Percent, VAT Amount, and Fixed Amount.
   • Percentage/Amount - specifies the base amount used to calculate the payment allocation.
   • Recipient - specifies the recipient of the allocated payment, such as a vendor or financial institution.
   • Recipient Bank Account - specifies the default bank account used for the payment allocation.

When you suggest vendor payments in the payment journal, the system allocates the specified percentage to the designated bank account and generates a corresponding allocation entry. For example, if the percentage is set to 10, when you make a payment to the vendor, 10 percent of the payment amount is reserved and transferred to the recipient bank account.

To remove allocation from a vendor ledger entry

If a payment allocation was mistakenly posted, you can reverse it from the Vendor Ledger Entries page. This removes the allocation status and allows for corrections or reposting.

To undo a payment allocation:

1. Search () for and select Vendor Ledger Entries.
2. Locate the relevant entry and clear the Allocation Payment checkbox.

To deactivate allocation calculation

When a default payment allocation is configured on a vendor or customer account, the allocation is automatically applied to all invoices. In some cases, you may not want to apply the allocation to a specific invoice.

You can deactivate the allocation calculation on individual invoices if the related payment allocation type allows it.

For example, if a customer normally uses a payment allocation, but a specific invoice should not be split into multiple allocations, you can deactivate the calculation for that invoice only.

Before you can deactivate allocation calculation, ensure that the allocation type allows removal:

• On the Payment Allocation Types page, the Allocation Removal Allowed field must be enabled. This ensures that users can deactivate the allocation for that type.
• Some allocation types, such as G/L account allocations, may not allow deactivation.

To deactivate allocation calculation on an invoice:

1. Search () for and select Purchase Invoices or Sales Invoices.
2. Open the relevant invoice.
3. On the invoice page, deactivate the allocation calculation option.

After you deactivate the calculation, the invoice is not included in payment allocation calculations, even if a default allocation is configured on the account.

To review and manage allocation suggestions

When you work with payment suggestions, you can simplify the overview and inspect related details:

• Use the action to hide related allocation headers and simplify the overview.
• View related allocation details in the FactBox on the Payment card.
• If only partial allocations are due, only those entries are suggested.

To close or update allocation entries

You can control whether an allocation appears in suggestions and track its payment status:

• To exclude an allocation from suggestions, clear the Open checkbox.
• When an allocation is paid, the Payment Register field is updated, so you can track related information.