Summary
This feature is targeted towards our cash-basis account customers. We have recently released a payment allocation algorithm that has been allocating a specific amount of the payment to each invoice item. This has been running in the background and has improved our cash-basis reporting. Although we do handle most situations, we would like to give the flexibility of editing our default allocations.
About The Allocation Algorithm
When paying an invoice in full, the payment will mark each invoice item as paid. THIS ALGORITHM IS ONLY FOR PARTIALLY PAID INVOICES.
When dealing with a partially paid invoice, we will allocate the payment using the following conditions:
The first due is the first to be allocated
Due date is the Season Start date or the Event Start time. If the invoice item does not have either, then it is considered due at the time invoiced.
Discounts for a product will be allocated before the discounted product is allocated.
How To Edit Payment Allocations
In order to Edit Payment Allocations, you will need to have the “Edit Payment Allocation” permission set. This will allow you access to the Edit Payment Allocation view.
You can edit payment allocations in two places, the checkout page and the invoice page.
The Checkout Page: When creating an open invoice at checkout or making a payment to an invoice that will leave it open, you will automatically be prompted with the Edit Payment Allocation modal. This will allow you to edit how much of the payment you want for each invoice item.
The Invoice Page: If you have permission to edit a payment allocation, you will see the edit icon next to each payment on the invoice screen. If you click on this, the Edit Payment Allocation modal will appear.
Editing the Allocations
In order to edit the allocations I created an open invoice as an example. Here is an example where a customer signed up for a class, purchased a membership, and a water bottle but signed up via a payment plan. Therefore they have a remaining balance that will be collected later.
If you click on the "edit allocation" logo next to the payment, the allocation table will appear.
As you can see, the default allocation of the $286.09 was put towards the taxes, membership and the water bottle first. Then it looked at allocating the remaining amount towards the class and the financing fee.
You can make edits to the default allocations if you choose. There is also a refresh button to set the allocations back to the default setting.
Why are we doing this?
This feature will allow our customers to have more control over their cash basis allocations, thus allowing reporting to be better. We are still working on even more improvements for our Cash Basis Reporting, so look forward to future improvements!