Debtors Reconciliation

Best practice for customers’ payment allocation

 

How to Create a Payment on Account from Bank Reconciliation (When the Payment Covers Multiple Invoices)

1. After uploading your bank statement, locate the line that contains the customer payment.
2. Click the plus (+) icon next to the transaction.
3. Choose the option to allocate the payment on account.

Recommended Workflow

Before you begin allocating payments:

1. Complete your bank reconciliation.
2. Open the following tabs in SortMyBooks and keep them open for easy navigation:
   • Reports > All Reports > Account Reports > Unallocated Lodgments and Payments, select a date range, and press Apply
   • Reports > Sales Reports > Collector Report
   • Reports > Customers Reports > Aged Debtors v2
3. Close all other tabs to avoid confusion.
4. Use the Unallocated Lodgments and Payments list to work through each item.
5. To find customer details:
   • Use the Sales > Lodgments tab to enter Customer information.
   • If an opening balance entry is required, go to Sales > Customers, select the customer, and add the opening balance.
   • Use Aged Debtors v2 to see all transactions for a customer. Press Ctrl + F to find the customer quickly.
   • After reviewing, close the extra tab to return to the full Aged Debtors v2 view.

Allocate Payment Using the Payments Tab

If you have a payment that covers multiple customer invoices, follow these steps:

1. Go to Sales > Lodgments.
2. In the Customer dropdown, select the customer.
3. You will see a Payment on the left of your screen.
4. In the payment screen:
   • Tick the Selected box for the payment.
   • Tick the selected box next to each invoice to which you want to allocate the payment.
   • Ensure the Total Selected balance in the payment section matches the invoice section.
5. Click Apply Payment to complete the allocation.

How to Unallocate a Payment

1. If the payment has NOT been reconciled:
   1. Go to Sales.
   2. Use the Search tab on the right to find the invoice.
   3. Open the invoice and go to the Payments tab.
   4. Click on the payment line and delete the entry.

2. If the payment HAS been reconciled:
   1. Go to Tools > Locks > Reconciliations.
   2. Find the reconciliation period that includes the payment.
   3. Click on the period to reopen it and press OK.
   4. After reopening, go back to the invoice and delete the payment entry as described above.
   5. Close the reconciliation.