Unallocated payments explained

A guide to how unallocated payments are created and managed in Caspen.

Overview

Unallocated payments represent money you have received from a client that has not yet been applied to any invoice. These payments remain on the client’s account until you decide to allocate them.

This allows accurate tracking of prepayments, deposits, bulk payments, and overpayments.

How unallocated payments are created

Unallocated payments can be created in two ways:

1. Overpayments on an invoice

If a staff member manually records a payment greater than the invoice total, the extra amount becomes an unallocated payment on the client’s account. Clients cannot overpay through online payment methods. Overpayments can only occur when recorded by a team member.

2. Standalone payments

Standalone payments recorded without linking to an invoice automatically remain unallocated until you choose to use them.

Where unallocated payments appear

You can view unallocated payments in three places:

• On the client profile under Payments

• Billing → Payments

• In Pay invoice → Existing payment when paying a finalized invoice

Unallocated payments can be applied to one or more invoices at any time.

Using unallocated payments

Unallocated payments can be manually applied to invoices. See Apply an existing payment to an invoice for details.

Important distinction

Unallocated payments are not the same as credit notes.

• Unallocated payments = money you have received but have not yet applied to an invoice.

• Credit notes = adjustments that reduce or correct an invoice total. See Add a credit note.

Keeping these separate ensures clear financial records and accurate reporting.

Need help?

We’re here to make billing simple. If you have questions, we’re always happy to assist. Reach out to our support team in Caspen by going to Support → Contact support, then send us a message.