How to Part Allocate on the Purchase Ledger

Part allocation on the purchase ledger allows you to make a partial payment against a supplier invoice rather than clearing the full amount. This is particularly useful when:

• The supplier has agreed to accept part payment due to a dispute or staged delivery.

• You are managing cash flow and only paying a portion of an invoice.

• A credit note or other adjustment is pending.

Understanding this process helps ensure that your financial records reflect the true outstanding balances owed to suppliers and supports accurate cash flow forecasting.

Step-by-Step Process

1. Navigate to the Payments Screen

   • Go to:
     Accounts > Purchase Ledger > Payments

2. Select the Payment Type and Date

   • Ensure the correct payment type is selected (this will default to BACS).

   • Enter the payment date.

3. Choose the Bank Account (if applicable)

   • If the payment is to be made from a specific bank account, select it from the drop-down menu.

   • If you leave this field blank, the system will use the default bank (0.0.60.6).

4. Note:
   If you select the wrong bank, you can correct this later by journaling the transaction to the appropriate bank account.

5. Enter Supplier Details

   • Input the supplier account number.

   • Enter a relevant payment reference.

6. Part Allocate the Payment

   • A list of open invoices for the supplier will be displayed.

   • Single-click the invoice you wish to make a part payment against.

   • Click ‘Part Pay’.

   • Enter the partial payment amount.

7. Complete the Transaction

   • Click Next, review the details, and then click Complete.

Additional Considerations

• Ensure that any part payments are clearly referenced for future reconciliation.

• If the invoice is eventually paid in full, you will need to repeat this process to allocate the remaining balance.

• You may wish to communicate with the supplier to confirm their acceptance of the partial payment and to avoid confusion.