Posting Invoice Part Payments and Allocations

Some Of the nominals and ledgers used in this topic may be different to those in your chart of accounts.

It is quite common to have some invoices that are paid in instalments rather than by a single payment. In this situation, you are not able to allocate the payment to the invoice in the normal way, as the values do not balance to zero. The Part/Over Payment function allows you to allocate the payment to the invoice and creates an additional line in the account details for the remainder.

It is not possible to part pay an invoice via a payment run in IRIS Financials. Part payments must be made by logging in to your establishment/organisation's online banking and making a manual payment directly to the supplier. When the payment has been made, you can then record the details in the software using the following processes. Please speak to your establishment/organisation's banking provider if you are unsure how to make a manual payment on your online bank.

In the following process, a BACS payment is used as an example of allocating a part-payment but the process can also be used for other forms of payment i.e. cheque.

To demonstrate the part payment in IRIS Financials, the following scenario has been used.

Scenario: A supplier invoice has been posted for £12,000. A payment for £1,000 needs to be made and allocated against the invoice, and the remaining balance paid at a later date.

Part paying and allocating an invoice consists of the following:

Posting a Part Payment

Allocating a Part Payment

Posting a Part Payment

Posting a part payment consists of the following steps:

Selecting the Required Document Input Form

Recording the Details of the Part Payment

Selecting the Required Document Input Form

  1. Select Documents, then select Document Input from the menu.

  2. The Document Input dialog is displayed. Select Drill (...) in Document type, then double-select to select ASB1 - BACS Payment (where AS represents the location code of the document type) from the Select a document type dialog. This selection filters the list of document input forms available in the next step.

  3. Next, select Drill (...) in Input form, then double-select to select the required input form from the Select an input form dialog. In the following example, Purchase Payment has been selected.

  4. The Date defaults to the date that you are entering the information, i.e. today's date. The date must be the same date as the date the part payment was made from the bank account. To change the date, select the Date drop-down arrow and select the required date from the calendar. Alternatively you can, select the up-down buttons, or overwrite the date using a DD Month YYYY format, for example, 31 January 2021.

  5. The Period defaults to the current accounting period. The document period needs to be the accounting period in which the part payment was made from the bank. If the required accounting period is now closed and no longer available, select the next open accounting period by selecting Drill (...) in Period, then double-select to select the required period from the Select a period dialog.

  6. Select OK to confirm your selections. The applicable document input form is then displayed.

Recording the Details of the Part Payment

  1. The Purchase Payment document input form is displayed populated with the details entered in the Document Input dialog.

  2. Firstly, enter the details of the bank account from which the payment was made. Double-select Bank, then double-select to select the required bank account from the Select account dialog.

    You are not able to move to the next field if the required data has not be entered.

  3. Next, select the supplier that received the payment. Double-select Account , then double-select to select the required supplier from the Select PURCHASE account dialog

  4. The Document Date defaults to the date entered in the Document Input dialog. The date must be the same as the date the payment was made from the bank. If required, you can change the date by selecting the Document Date drop-down arrow, then selecting the required date from the calendar.

  5. Enter the value of the part payment in Value . This amount must exactly match the amount that left the bank account. In the following example, the amount is, 1000.00 (do not enter any currency symbols i.e. £, $, etc.)

  6. Enter a description to help identify the purpose of the payment in Description. In the following example, the supplier invoice number and part payment has been entered, e.g. INV0001 Part Payment.

  7. The Account Summary on the right-hand side of the form displays the Creditor Balance, the Document Balance, and New Creditor Balance.

    If the Account Summary shows negative balances, it may mean that the supplier account is in credit, or that there are invoices missing. Continue to record the payment, and check the supplier account as necessary.

  8. When all the required payment information has been entered, press F5 or select POST to post the payment.

    If you want to allocate the payment after posting, select ALLOCATE to enable the allocation function before selecting POST, to display the Allocation window (Alternatively, press and hold Shift, and press F5 when posting).

Allocating a Part Payment

  1. The Allocation window is displayed. Select the invoice from the transactions displayed in the right-hand side panel. Then select and hold to drag the transaction onto the document to which it is to be allocated to in the left-hand side panel.

    If you did not select to allocate the payment when it was posted, you need to find the document by running a Detail Enquiry or from the supplier account. For more information, please see Running a Detail Enquiry or Viewing Supplier Transactions.

  2. The document to be allocated to the payment is displayed under the invoice document in the left-hand panel. To part allocate the payment, the values in Allocation Amountmust balance to 0. Select in Allocation Amount on the document line for the document with the greater value i.e. ASPI - Invoice , then overwrite the value as the same amount as the payment. For example, the following payment is for £1,000, so the value of the ASPI - Invoice being allocated needs to be changed to -£1,000 (do not enter any currency symbols i.e. £, $, etc.)

    If the items to be allocated do not balance to 0 the documents cannot be allocated.

    allocation-part-payment-to-invoice-allocation-amount.png
    allocation-part-payment-to-invoice-allocation-amount-change.png

  3. When the Allocation Amount for all the documents being allocated balance to 0, Allocate is automatically selected. Select SAVE to confirm the allocation.

  4. The Show Allocated Items dialog is displayed. Select Yes to display the Detail Enquiry window.

  5. The Detail Enquiry window is displayed. The transactions that have been allocated are displayed. The original document , for example ASPI - Invoice is then available for allocation with future payments for the remaining balance.