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How to allocate a client payment

Unallocated client payments will need to be associated with one or more invoices. The same applies for expenses and refunds, too, so it’s best to understand the impact that these can have on your company’s year-end accounts prior to filing with HMRC and Companies House.

“Unallocated” refers to payments, or refunds, that you've recorded in your Crunch account but have not yet associated with an invoice, expense, or credit note.

What’s the impact on company year-end accounts?

Year-end accounts can’t be put into production if transactions relate to the current year. This has the effect of delaying the production of your accounts.

What are the common reasons for unallocated payments?

  • The payment hasn't been matched to an invoice in your Crunch account. You’ll either need to locate the invoice or, if it doesn't exist, create a new one and then allocate the payment to it.

  • You’ve created a duplicate recording. Please check your client payment lists to make sure that there are none as duplicate transactions need to be deleted.

  • Opening balances from your previous accountant were not provided.

  • There could be invoices raised in your previous accounting year but have been paid in your new accounting year. If this is the case, please let us know as soon as possible.

  • Credit notes allocated prior to payment or receipt of funds.

  • Differences between the invoiced amount raised and the paid amount received.

How do I allocate them correctly? There’s 2 ways you can do this:

You’ll need to consider the above points before moving onto the allocation of payments, as a mistake here could mean incorrect recordings in the account which can cause delays in production of the year end accounts for HMRC & Companies House. 

If the payment received is for an existing invoice, we will show you the best way to allocate this.

We’ve put together a handy quick clip for you, however, please follow the instructions below if you’d prefer step-by-step support:

Please note: If you do not have an outstanding/overdue invoice available, you will need to raise & issue one first in order to proceed with allocation. Just remember; all client payments need to have an invoice raised & issued in order to allocate.

Step-by-step support:

Firstly, you’ll need to be on your ‘Sales > Dashboard’ in Crunch.

You’ll then see an overview of all “outstanding/overdue invoices” as well as an “unallocated client payment” section directly underneath and from here you’ll be able to determine which invoice the client payments’ for.

Simply select the ‘Allocate’ button and it’ll take you onto the Client Payment information form, where you’ll see that all information is populated for you automatically because the payment has already been recorded in the account, but it just hasn’t been associated with an invoice yet.

Just quickly check that the information is accurate before proceeding and then scroll down to the “Allocate to Invoice(s)” section, as shown below:

You’ll now need to set the allocate an amount, whether it’s full payment or partial payment, against the invoice by entering the amount within the ‘Allocated’ field.

If you have multiple invoices for the same client outstanding, you’ll need to be sure you’re allocating the payment against the correct invoice. 

Once you’ve done this, you’ll see that the figure directly above it changes, depending on the amount you’re reflecting as paid against the invoice - It’ll change to a green label if fully settled and paid in full, for example:

Lastly, don’t forget to hit the ‘Update Client Payment’ button. That’s it! 

Is the payment received a refund/credit note/expense?

If the payment received isn’t for an invoice, perhaps it’s an expense/refund/credit note, you may need to dive a little deeper into your client payments in order to find the appropriate allocation.

You can easily access this list at any time by navigating to your list of client payments. Just to go ‘Sales > Client Payments’, and use the "Allocation status" filter. Selecting "Not fully allocated" will present you with a list of all of your payments which have not yet been entirely allocated. 

You can see how much you have unallocated and allocated in the columns of the table:

To allocate the payment, simply use the relevant ‘Options’ button and click ‘Edit’.

You'll then be presented with an "Edit Payment" screen where you can allocate the amount. In our example, we received a payment of £1,200 which we’re going to allocate to the relevant invoice. If your client pays you in bulk for several invoices, you can allocate the payment amounts accordingly to each relevant invoice.

Clicking on ‘Update client payment’ then allocates the payment to the invoices, and you’ll see the invoice(s) the payment is allocated to in your client payments list.

Have you received have a client payment but there’s no invoice for it? 

Need to provide a refund to one of your clients?

Still unsure? No problem! Take a look at our handy recording your client payments video:

Last Updated: 13 Nov 2019 03:22PM GMT
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