Paying documents from existing credit (balance allocations)

A balance allocation applies a contact's existing credit balance (from a prior advance or overpayment) to a new invoice or bill. This reduces the amount the contact owes without requiring a new cash payment.

Before you start

• The contact must have an existing credit balance. Check their balance on the Contacts page.
• You are creating or reviewing an invoice (for customers) or a bill (for vendors).
• You need permission to create or edit documents. Ask your admin if you cannot access the document form.
• Confirm the currency matches: if applying a balance in a different currency, note the exchange rate.

Steps

For an Invoice (Customer Credit)

1. Go to Invoices → New Invoice or open an existing invoice to edit.
   Open in Usystems

2. Fill in the invoice details: contact, items, amounts, and tax.

3. Scroll to the Balance Allocations section (usually below the line items).

4. Click Add Allocation or + Allocate Balance.

5. In the allocation row:

   • Contact is already filled (the invoice contact).
   • Available Balance shows the customer's current credit.
   • Choose how much to apply (either the full balance or a partial amount).
   • Confirm the Currency and Amount to allocate.

6. Click Apply or Confirm to add the allocation.

7. Review the invoice total: it should now reflect the allocated balance as a deduction.

8. Click Save to complete the invoice.

For a Bill (Vendor Credit)

1. Go to Bills → New Bill or open an existing bill.
   Open in Usystems

2. Fill in the bill details: vendor, items, amounts, and tax.

3. Scroll to the Balance Allocations section.

4. Click Add Allocation or + Allocate Balance.

5. In the allocation row:

   • Contact is pre-filled (the bill vendor).
   • Available Balance shows your credit with the vendor.
   • Choose the amount to apply.
   • Confirm the Currency and Amount.

6. Click Apply or Confirm to add the allocation.

7. Review the bill total: it should be reduced by the allocated amount.

8. Click Save to complete the bill.

Accounting impact

When you allocate a balance to an invoice or bill:

• The contact's balance liability or asset account is debited (balance used).
• The receivable (for invoices) or payable (for bills) is credited (amount reduced).

This nets the two accounts, recording the settlement without requiring a separate payment entry.

Tips & common mistakes

• Allocate only available balances: check the contact's balance page to confirm they have credit before creating the allocation.
• Use partial allocations for flexibility: if the balance is larger than the document total, allocate only the needed amount and keep the excess for future use.
• Watch exchange rates: if the balance is in a different currency, the system will apply the current rate; confirm it is correct.
• Cannot undo easily: once saved, balance allocations are linked to the document. To reverse, you may need to delete and recreate the document or contact your admin.

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