Tip of the Week: Allocating Payments

Specify a Credit Type e.g., Credit Memo/Payment/Write Off such that the Payment Method drop-down gets populated accordingly with the credit type specific options. When you fill in all the relevant details in the form above and hit the save button, you can then proceed to allocate this payment to the appropriate Client-Matter by clicking on the ‘Allocate’ link next to it:

A window will pop up giving you a few options on how you would like to allocate this amount. Clicking on the Allocate Oldest First button will allocate the entire amount to the unpaid oldest invoice if you have multiple unpaid invoices listed under this Client-Matter. Clicking on the Compute Equal Proportions button will equally distribute the allocation amount between all the unpaid invoices. The Allocation Date field is used for the date funds are to be applied to the unpaid balances. It is important to note that this date selection will affect how the reports are then run against this payment.

Click on the Allocate button to complete this process, and another window will ask you to click ‘Save‘ to confirm this allocation. Payment allocations also mean a healthier cash flow without interruption of income. And when you are on top of payment allocations, you can easily identify any shortfalls and investigate errors quickly.

If you don’t like having to do payment allocations, TimeSolv recommends storing Clients’ credit card info on file. That way, you can just ‘Charge’ the card from the Sent Invoice screen and the system will automatically allocate the payment to the invoice for you!