Allocation Overview

Generally the allocation of money to an invoice is handled automatically within BusiPro.

Under normal circumstances cash allocation occurs in the following steps :-

  • An Invoice will be raised and sent to the customer.
  • The customer will then send payment in one form or another.
  • The contract or the invoice will then be located and the payment applied.
    • If the payment is applied to a contract, BusiPro will automatically apply the money to the oldest outstanding invoices for that contract.

Unfortunately things aren't always that simple! Sometimes allocations need to be made between different contracts, customers, events, publications or currencies. Write off's need to be made for different reasons and mistakes need to be corrected.

All of these situations can be dealt with using the tools in place within the account enquiry screen. The trick is to first properly understand what it is you want to do and what limitations BusiPro enforces.

Let me cover some of the limitations and explain why they are in place.

  • BusiPro will not let you simply allocate money across different products. This is in place for two reasons :-
    1. Different products can have different bank accounts
    2. When reporting income for different products, confusion would arise if money applied to one show or publication was used to pay an invoice for another.
  • BusiPro will not let you simply allocate money across currencies. In other words, you can't use a Euro payment to pay a Dollar Invoice.
    • This is because exchange rate profit and losses are bound to apply and these need to be handled properly.
  • BusiPro will not let you use left over money from one customer's account to pay off invoices on another customer's account.
    • This would be very confusing and probably illegal!
If you haven't already, now might be a good time to look at the Allocation and Write Offs Screen.

However, all of these issues can be covered by taking a few small additional steps.

Although a basic allocation between an invoice and a payment simply requires the balance of both opposing items to be reduced by the same amount, a more complex allocation may be made generating two opposing adjusting transactions. In some circumstances, BusiPro will automatically generate these transactions, in others, you will need to generate the transactions manually.

Allocation Write offIf we look at the first point, allocating money across different products. When you allocate a payment value on an invoice or a receipt, the value is shown in the field at the top of the screen in the Allocation Total field.

The rule is that if this field does not equal zero then BusiPro will not allow you to update the record. However, if the value for one event is €1000 and the value on another event is €-1000 then you can click on the Blue Arrow next to the Journal Total Box for each product, matching the values to each other. This will allow BusiPro to post adjusting journals between the products.

The second point, Allocating money across currencies. As in the example above, you cannot update without the value totalling zero. With different currencies, you are almost certainly going to get some adjustment that needs to go to the Exchange rate P&L account. So, the answer is to allocate one side of the transaction, say £800, then click on the blue arrow to write it off, and also click the check box to show that the £800 is to be written off to Exchange rate P&L. Then change the currency, allocate the other side of the transaction, say €1000. Click the arrow to write that off, then click the checkbox to write that off to Ex.Rate P&L. This will cause any home currency difference to remain in the Exchange Rate P&:L and not in the Write off account.

For the third point, Allocating money across accounts. The correct way to do this is to refund the money on one account manually, then pay the money on the other, see Sales Payment Transactions.