To begin let us understand DR's and CR's.

  • A Debit will increase the customers account 
  • The Customer's Account is an asset your organisation owns
  • Anything that increases the value of your organisation is a Debit
  • A Credit reduces the assets
  • So when a Customer pays their account it reduces the Debtors Account Value and therefore is a Credit

Examples of:

Debits =     Invoices

                 Journal Entries that Increase the value of your Current Debtors Account


Credits =    Credit Notes

                  Payments off the account 

So in this lesson we are going to refer to entries as Debits and Credits.

RULE: You can allocate ONLY one credit at a time

Why this rule?

  • If you ever need to report on how a Credit was Allocated, you can.
  • If you need to unwind an allocation you can
  • When you could allocated more than one credit at a time, and unwound the transaction, it would cause issues.


1. Go to the customer's Current Debtors Account.

2. Makes sure the entries required to be allocated are entered.

3. Select 'Tag Receipts'

4. Select the CREDIT you wish to allocate

5. Select the DEBIT you wish to allocate it to

6. Because you selected the CREDIT first, the system will adjust the amount of the DEBIT

7. If the CR equals the DR the system will automatically recognise this and want to process the allocation.

If it doesn't and the balance is zero, select the button "Post Allocation"

This completes the process.

To clear away other CREDITS simply repeat the process.