Apply an existing payment to an invoice

Learn how to use an existing unallocated payment to pay a client’s invoice.

Overview

If a client has made a payment that has not yet been used, you can apply it to an invoice once the invoice is finalized.

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Apply an existing payment

To apply an existing unallocated payment:

1. Go to Billing → Invoices and open the invoice (Actions → View, or click the invoice number).

2. Click Pay invoice → Existing payment.

A list of the client's unallocated payments will appear.

1. Enter the amount you want to apply.

2. Click Apply.

The applied amount will appear under the Payments section of the invoice.

The invoice’s Payments section shows the applied payment and the allocation number.

The Payments section shows the payment and the allocation number.

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How allocations work

When a payment is applied to an invoice:

• The invoice displays the payment with an allocation number

• Clicking the allocation number opens the Allocation screen

• From the Allocation screen, click Allocated from payment number to open the original payment record

The Allocation screen shows:

The Allocation screen displays the allocated amount, allocated from payment, and allocated to invoice.

• Allocated amount (how much was applied)

• Allocated from payment (the payment the money came from)

• Allocated to invoice (the invoice the money was applied to)

In the payment record:

The payment record shows the amount marked as Allocated and lists the invoices it was applied to.

• The payment shows an Allocated amount

• The invoices that received the payment are listed

• The payment and invoice link to each other for easy tracking

This is especially useful when:

• One payment is split across multiple invoices

• Reviewing which invoices were paid using a prepayment or bulk payment

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How to unlink an allocation

Payment allocations can only be removed from the Allocation screen.

To unlink an allocation:

1. Click the allocation number on the invoice.

2. On the Allocation screen, click Delete.

The allocation will be removed, and the amount will return to Unallocated in the payment record.