FAQ: Balance Allocations
Common questions about applying contact balances to invoices and bills.
What is the difference between an allocation and a payment?
A payment is new money received or sent. An allocation uses existing credit that was already on the contact's account (from a prior advance or overpayment). No new cash is exchanged; the balance is simply moved from one account to another.
Can I allocate a balance to a purchase order or sales order?
Allocations are typically for final invoices and bills. Purchase orders and sales orders are not invoiced yet, so you cannot allocate to them. Apply the balance when the order is invoiced.
What if the balance is not enough to cover the entire invoice?
You can allocate part of the balance and pay the remainder with a separate payment. The system will show both the allocated portion and the unpaid balance due.
Can I allocate a balance in a different currency than the document?
If the balance and document are in different currencies, the system will apply the current exchange rate. Confirm the rate is acceptable before saving, as rates can change daily.
Once allocated, can I change the amount or reverse it?
Changes depend on the document status. If the document is still a draft, you can edit or delete the allocation. Once the document is finalized or paid, you may need to delete the entire document or contact your admin to reverse an allocation.
What happens if I allocate a balance to a bill from a vendor and later the vendor disputes it?
Once allocated, the vendor's balance is reduced. If they dispute the allocation, you will need to reverse it (which may require recreating the bill) or record an offsetting payment to restore the balance. Keep clear communication with vendors about allocations.
Can I allocate from one contact's balance to another contact's document?
No. Allocations can only be applied to documents of the same contact. Each contact's balance is independent and cannot be transferred to another.
How do I know if a balance allocation was successfully applied?
Check the contact's page or the document itself. If the allocation is saved, the document's total should reflect the deduction, and the contact's balance should be reduced by the allocated amount.
Was this helpful?