Applying an Imbalance as Discount During Allocation

If the transactions you have marked for allocation on debtor/receivables, creditor/payables or client accounts do not initially balance, the difference may be the amount of settlement discount due on the transactions.

When you choose to post or save the allocations and they do not balance, the allocation process calculates any discount available and uses this to try to balance the allocations. See 'How is Settlement Discount Treated During Allocation?'

Note:  If the Write On/Write Off Balancing option has been enabled on the Business Unit Setup, the discount calculations are switched off and the allocation imbalance may be posted to a write off or write on account.

It can only calculate and apply the discount automatically if you are allocating a single cash payment. This is because it must use the cash payment date to determine whether or not the discount has been earned.

If the transactions were eligible for discount but the discount was not enough to balance the allocations, you can choose to apply all of the imbalance as discount. This option is provided on the GENDIS version of the Account Allocation - View Totals form.

This version of the dialog includes a Discount tab that displays useful discount calculation information to help you determine whether or not the imbalance should be applied as discount.

Note: GENDIS also allows you to generate and post another transaction to the account to balance the allocations. For example, if the customer has deducted an amount because the goods were damaged in transit, you may want to enter a credit transaction onto the account. See 'Generating Transactions from Account Allocation'.

This form is displayed when you choose to post or save the allocations, if the out-of-balance amount can be applied as discount.

To display the window at any other time:

  1. From the Action menu on the Search Results - Account Allocation (or Search Results - Ledger Entry - Online Allocation) form select Allocation Totals.
  2. Select the GENDIS form on the Find Form List.