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Allocate Receipt/Credit Note
12-04-2013, 09:34 PM,
Allocate Receipt/Credit Note
Unable to understand the concept of Allocate receipt/Credit Note from manual. Please can anybody give simple guideline for same.

12-05-2013, 05:03 PM,
RE: Allocate Receipt/Credit Note
The concept is used in many accounting systems:

open-item accounting requires the invoices that are being paid off by a customer receipt to be "allocated" against the receipt - so the system knows how to apply the receipt.

Quote:Receipts - Allocating to Invoices

Once all the details necessary have been entered for the receipt - the customer, the exchange rate and the amount in foreign currency, the receipt is ready to be allocated to the invoices which is to settle.

This concept can seem strange to businesses that have previously operated customer accounts where they are only interested in the current months' transactions and the balance brought forward from last month. The aim of this system is to remove the question from the customer's lips ... "What is that figure, balance brought forward made up of?". Under the "Balance Forward" system this question can be a tough one to answer, since there is no record of which invoices were paid by which payment. However, this system needs explicit instructions for each receipt on which transactions should be settled as a result.

From the menu under the Accounts Receivable tab - Click on the link to Allocate Receipts or Credits.

This page shows all outstanding receipts and credits that are yet to be allocated. Clicking on the links against these receipts and credits takes the user to the outstanding transactions on the customers account that are available for allocation. This screen shows all unallocated transactions but only invoices are available to allocate the receipt or credit note to.

Note that allocations of a receipt are not allowed to another receipt. If necessary, negative receipts can be used to reverse allocation against invoices and debit journals (although this is undesirable). Once entered, receipts cannot be deleted - (obviously this would be undesirable from the standpoint of proper internal controls).

If the whole of the receipt is not matched off against (allocated to) invoices and debit journals the system will prompt to ensure that this is what was intended. Unlike many systems, allocations can always be completed or amended later.
Phil Daintree
webERP Admin
Logic Works Ltd

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