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.

  1. Search for the account with the unallocated credit, then double-click the account entry in the search results.
    The Account summary page is displayed.
  2. In the Unallocated Transactions list highlight the credit to allocate, then click Allocate transaction.
    The Allocate to user window is displayed.
  3. Click Allocate next to the debit to which you want to allocate the credit.
  4. Type the amount to allocate in the Amount to allocate field and click Allocate.
    Smile allocates the credit to the debit.