Allocate transactions
Allocating a transaction to an unallocated transaction reduces the outstanding balance of the unallocated transaction. For example, allocating a $75 receipt to a $100 invoice reduces the outstanding balance of the invoice to $25.
You can use several methods to allocate transactions:
- auto-allocation—allocates credits to the oldest outstanding debits.
- manual allocation—allocate a specific credit to an outstanding debit.
Tip: To auto-allocate transactions, click Allocate on the
Accounts tab. To avoid settling invoices in dispute, do
not auto-allocate credits if the oldest unpaid invoice on an account is
disputed.
This task explains how to manually allocate a credit to an outstanding debit.