• From: Ghana
  • Registered: 05/28/2012
  • Posts: 51

Topic: Effect of "Allocate Customer Payments or Credit Notes" on our books

Hi all,

How does "Allocate Customer Payments or Credit Notes" affect our books, more specifically trial balance, P&L, balance sheet?

Also I see  "credit this" icon on the transaction page on the right side of invoices. What effect does it have on our books when we credit a sale invoice?

Thanks.

  • From: Singapore, India, Chennai
  • Registered: 05/02/2009
  • Posts: 6,160

Re: Effect of "Allocate Customer Payments or Credit Notes" on our books

The Payment Allocation generates a transaction entry for it in each instance. Hence the Balance Sheet AR/AP part of the Trial balance will only change and not the P&L or it's part of the Trial Balance.

apmuthu's Website

  • From: USA
  • Registered: 03/05/2018
  • Posts: 123

Re: Effect of "Allocate Customer Payments or Credit Notes" on our books

I'm not sure if this is any help, but it will move the amount from an account receivable to a bank account, so your assets would stay the same and it has no effect on revenue, because the sale was recorded when the invoice was created.

oakstreet1's Website