Allocations - The Most Powerful Way to Streamline Your Vendor Payables

Vendor Allocations Inquiry Overview

To use the Allocations Inquiry screen in Accounts Payables mode Vendor Allocations, users can access it from any accounts transaction inquiry screen. By default, when the Allocation tool is selected, SapphireOne determines any transactions for all Vendors. However, users can adjust this default setting to show only specific vendors as required.

The Allocation Tool provides users with several options to customise the allocation process. For example, users can allocate transactions based on the oldest or newest date, allocate specific amounts or percentages, or allocate transactions based on a specific reference number or transaction type. The tool also provides the ability to allocate partial amounts against invoices, as well as the ability to allocate a single transaction against multiple open items.

Users can also un-allocate transactions if necessary, whether because a transaction was allocated to the wrong open item or a payment was reversed. The tool provides the ability to unallocate the entire amount or a partial amount, depending on the user’s requirements.

More Options for Allocations

SapphireOne’s Allocation Tool also offers the capability to perform re-allocations, as long as the transaction remains unposted. This functionality proves beneficial when a payment has been allocated incorrectly and requires reassignment to another open item. The tool empowers users to conduct re-allocations for either the complete amount or a partial sum, depending on their specific needs.

To recap, the Vendor Allocations mode of the SapphireOne Allocation Tool within Accounts Payables is a robust and user-centric solution aimed at streamlining the allocation process. This tool offers users a range of options to tailor the allocation workflow, coupled with the capabilities to un-allocate and reallocate transactions when necessary. Its adaptable nature and effectiveness render it a valuable resource for organisations seeking efficient management of vendor transactions and allocations.

This screen is very similar to the Transaction Inquiry screen, however this function only displays the records that have not yet been fully allocated.

Allocation Setup in Master Defaults

It is crucial for users to be aware of the Master Defaults checkbox that governs the allocation functionality in SapphireOne for both Clients and Vendors. This checkbox is located in the Data Entry area of the System page within Master Defaults. It is a specific checkbox labeled as .

When the Allocation checkbox is ticked, SapphireOne will automatically allocate transactions for both Clients and Vendors. Conversely, if the checkbox remains unticked, SapphireOne will not automatically allocate transactions. In such cases, users will need to manually allocate transactions using this dedicated Allocation Inquiry Tool.

It is important to understand that the Allocation checkbox functions as a Master Default, which implies that it applies to ALL Clients and Vendors across the system.

To summarise, the checkbox within Master Defaults plays a pivotal role in determining how SapphireOne handles the allocation functionality for Clients and Vendors. Selecting the checkbox triggers automatic transaction allocation, whereas leaving it un-selected requires users to manually allocate transactions using the Allocation Tool

Allocation Procedures

For Allocation procedures in Accounts Payables mode, when creating a transaction and the green tick selected, SapphireOne ERP Accounting Software will proceed in one of two ways from the selection made by the user in master defaults as follows:

  1. Checkbox not selected – SapphireOne will determine that an Allocation should not be made when a Vendor-based transaction is created. When the is selected, the new transaction will be saved immediately without any Allocations. The Allocation Inquiry function will then have to be used to select allocations for the already existing transactions.
  2. Checkbox selected – When any transaction requiring an allocation is initially created, the user will select the green tick as normal when the checkbox is selected. SapphireOne will then automatically display the Allocation Screen immediately. Once allocations for the transaction have been selected, the user will have to select the green tick for a second time to process the selected allocations for the selected Client.

In both cases, the Allocation Inquiry screen is used to allocate transactions for Open Item Clients against their respective transactions that have not yet had an allocation made against them. The Allocation Inquiry screen is similar to the Transaction Inquiry screen, but only displays records that have not yet been fully allocated.

Allocation Functionality

The Allocations Inquiry screen is an important tool within SapphireOne Accounting Software that allows users to allocate transactions for Open Item Vendors against their respective transactions that have not yet had an Allocation made against them. The following are some key features and procedures related to allocation functionality:

Current Records

The Allocation inquiry screen displays all current records until they are 100% allocated. Once a record is fully allocated, it will automatically be removed from the allocation inquiry screen, even if the end of month has not been processed.

Amending the Allocation

Users can un-allocate and re-allocate within the Allocation screen at any time. Partial allocations, fixed amounts, or percentages can also be allocated to any transaction.

Deleting an Allocated Transaction

To delete a transaction that is either fully or partially allocated, the user must first identify the transaction within the allocation inquiry screen and un-allocate it (as long as it is not posted). Once the allocation is 0%, or the transaction has been completely un-allocated, the user can then delete the transaction from the normal transaction inquiry.

Incomplete Allocations

Any transaction with incomplete allocations will be displayed until it is fully allocated. Once it is fully allocated and the month-end is completed, it will no longer reside within the allocation screen.

Retrieving Transactions from History

Users can retrieve transactions from history back to the allocation inquiry screen if the transaction requires un-allocating and has been fully allocated and now resides within history. This tool is contained within Accounts mode, History transactions.

Reversing Allocated & Posted Transactions

The Reverse Transaction tool within Sapphire One transaction inquiry screen can automatically un-allocate any allocated percentage to 100% for any posted transaction. It will also automatically un-allocate and re-allocate that particular transaction to the reversal.

Partial or Percentage Allocation

Users can perform a partial or percentage allocation by selecting/highlighting a line and right-clicking on it. The user can then proceed with the necessary steps to perform the allocation.

In summary, the Allocations Inquiry screen is a powerful and user-friendly tool designed to simplify the allocation process for Open Item Vendors. The tool provides users with several options to customise the allocation process, as well as the ability to un-allocate and re-allocate transactions as required.

To allocate a transaction, you must first select and highlight the line. Then, you have two options:

  1. Fully allocate the transaction by selecting the line. Once selected, the full amount for the transaction will be allocated immediately.
  2. Use the Allocation Dialog screen by right-clicking (for both Mac and PC) or selecting the button to display the Allocation Dialog pop-up. This will allow you to allocate a specific amount by entering it into the pop-up.

Both options are useful for allocating transactions quickly and efficiently.

To clarify, when the Allocations Inquiry screen is selected, all transactions for all vendors that have not been fully allocated will be displayed by default. This allows the user to easily identify which transactions still require allocation.

In cases where the amount remaining to be allocated is less than the amount to be allocated, only the remaining balance will be allocated to the transaction. This ensures that the allocation is accurate and reflects the actual amount due.

When raising an invoice that has been flagged with PAYG withholding tax, users may encounter a warning message. However, it’s important to note that until the payment is raised and posted, there is no effect on the G/L accounts. Therefore, users should ignore the warning message and proceed with raising the invoice as normal.

Dictation and Speech to Text Overview

SapphireOne’s implementation of both Dictation (MacOS) and Speech to Text (Windows) is a game changer for data entry. Any data entry field you can type into using a keyboard can use this feature.

You can also use this functionality on all inquiry screens within SapphireOne. For example, the user is in a Contact within a Client. They may have made a phone call to that particular client using the Softphone technology. Consequently, this will automatically date and time stamp both the contact and the phone number you called.

As soon as the call is completed, the user has the ability to use Speech to Text (Windows) or Dictation (MacOS). They can dictate into the memo field of the CRM contact, adding as much description as they require.

Dictation and Speech to Text Procedure

This functionality applies across every single Data Entry screen. For example, the SapphireOne user is entering a Vendor Invoice (VI). Additionally, you may want to add a memo within the Vendor Invoice (VI). The user can utilise the tool and simply dictate the memo.

Another example is if the user wants to add additional lines to the General Ledger account, within each General Ledger account. When the user is completing data entry using a General Ledger, there’s always a unique memo field for each GL account line.

The user can then utilise this feature to quickly add the information they need to add. Alternatively, you may have an interview with an employee. After the interview process is completed, the user can then make notes about the employee.

Speech to Text or Dictation is an extremely powerful tool. It is something that we at SapphireOne, as well as our clients, utilise daily. It is a massive time saver.

Displaying 100% Allocated Transactions in the Allocations Inquiry Screen

To view transactions that have already been fully allocated in SapphireOne, users need to adjust the default display settings. Initially, the Vendor Allocations Inquiry screen only shows transactions that have not been fully allocated.

If users want to check or un-allocate a transaction that has already been allocated, they must change the settings to show all transactions with allocations.

This can be done in two ways:

  1. Use the keyboard shortcut (Command F) to bring up the ‘find’ pop-up and manually search for the transaction. By default, the ‘All Records’ display option is selected.
  2. Alternatively, select the ‘Options’ menu on the main toolbar and choose ‘Find’. From there, users can select to search for transactions that are ‘Allocated Less Than 100%’ or search all records under ‘All Records’.

By adjusting the display settings, users can easily access and manage transactions that have already been fully allocated in SapphireOne.

Preventing the Deletion of An Allocated Transaction

If a user attempts to delete a transaction that has allocations made against it, SapphireOne will not allow the deletion. However, the user can use the un-allocation function to remove the allocation from the invoices associated with the transaction, as long as the transaction is still un-posted. More information on this process is provided below.

Additionally, when a transaction list is displayed on screen, the Tools function provides the option to allocate either 100% or 0% to the currently highlighted transaction. These allocation and un-allocation actions can be performed on both posted and un-posted transactions.

How to Allocate a Transaction

Once the Allocations Screen is displayed, the transaction you highlighted earlier will be displayed. You can then allocate an amount or percentage of the transaction by selecting one of the available options.

If you want to allocate a specific amount, simply enter the amount in the Amount field next to the transaction. If you want to allocate a percentage, enter the percentage in the Percent field. You can also allocate a transaction by selecting an outstanding invoice from the drop-down list of transactions.

Once you have entered the allocation information, select ‘OK’ to save the allocation. The allocated amount will then be displayed next to the transaction in the Allocations Screen.

Note that if the allocated amount is less than the total amount of the transaction, the transaction will remain in the Allocations Screen until it has been fully allocated.

Allocations Screen

In addition to allocating amounts, the Allocations Screen also allows for unallocating and reallocating amounts. To unallocate an amount, simply select the line to be unallocated and click the Unallocate button. To reallocate an amount, select the line to be reallocated and click the Reallocate button.

The Allocations Screen also includes several customisation options to facilitate the allocation process. Users can allocate transactions based on date, reference number, transaction type, or specific amounts or percentages. The tool also allows for partial allocations and the allocation of a single transaction to multiple open items.

Once the allocations have been made, simply click the ‘Process’ button to complete the allocation process. The allocations will then be reflected in the respective transactions and in the accounts.

Multiple Sort and Allocation Criteria

When utilising the Apply To drop-down menu in the Allocations Screen to automate transaction allocations, users should bear in mind that SapphireOne inherently arranges the display based on dates. If users opt for either the Bottom Up or Top Down option from the drop-down menu, unintended outcomes might arise if the list is rearranged for any reason. As a result, it’s advisable for users to meticulously select the invoices for payment on a per-transaction basis, ensuring precision in allocations. It’s crucial to recognise that the default date-based sorting might not align with the chosen allocation approach, necessitating careful selection to maintain allocation accuracy.

The Allocations Screen Has Five Areas

The Allocations Screen is divided into five areas, each with its own purpose. These areas are:

  1. Transaction Area: This section displays the basic information about the Vendor that the allocation is being made for. The Remainder amount left to be allocated and the Total Allocated amount are both shown on the right-hand side of the screen.
  2. Position Area: The Position area displays the amount of Remainder available for allocation and the Total Allocated amount so far.
  3. Allocations Lines Area: The Allocations Lines area shows the lines that are available for allocation. This may change depending on the selection made in the Activity area. The drop-down menu to the right-hand end of the Allocation Lines heading has two options. The default setting is “All,” which displays all available lines, including previously applied discounts. If the second option, “Discount only,” is selected, only current discounts will be displayed.
  4. Activity Area: The Activity area contains four drop-down menus, a check box, and a button for managing discounts. These menus enable users to perform certain activities related to allocations. The options available include “Apply To,” “Distribution,” “Discount,” and “Delete.” From each menu, users can make their selection.
  5. Discount Area: The Discount area includes a checkbox for applying discounts and a button for managing the discounts. This section allows users to allocate discounts to transactions as needed.

‘Apply To’ menu options

The Activity Area of the Allocations Screen includes the ‘Apply To’ drop-down menu as the first option. This menu manages how the Allocations are applied to transactions. The available options on the ‘Apply To’ menu are as follows:

Bottom Up:  This option on the ‘Apply To’ menu spreads the transaction to be allocated from the bottom transaction upwards, fully allocating until there is no more to allocate.
Top Down:  This option on the ‘Apply To’ menu spreads the transaction to be allocated from the top transaction downwards, fully allocating until there is no more to allocate.
Same Amount:  This option on the ‘Apply To’ menu searches for transactions of the same Value. 
Same Internal Reference:  This option on the ‘Apply To’ menu searches for the transaction with the same Internal Reference number. 
Run No:  This option on the ‘Apply To’ menu allows you to search for transactions by the Run Nº. A dialog screen will then ask you to enter the run number.

‘Look At’ menu Options

The second drop-down menu in the Activity Area of the Allocations screen is the ‘Look At’ menu. This option allows users to view the details of the currently selected transaction. From this menu, users can choose to look at different aspects of the transaction such as the general ledger, invoices, invoice lines, and wide invoice lines. This provides users with the ability to see a detailed breakdown of the transaction and ensure that they are allocating the correct amount.

Transaction:  This option in the ‘Look At’ menu allows you to view the details of the selected transaction, including the Vendor Invoice (VI) that is being allocated.
Source:  The ‘Source’ option on the ‘Look At’ menu in the Activity Area of the Allocations screen allows you to look at the Purchase Vendor Invoice (PVI) of the selected transaction which is being allocated.

‘Display’ menu options

The ‘Display’ menu, located in the Activity Area of the Allocations screen, allows you to view records based on pre-defined criteria. There are several options available in the ‘Display’ menu, including:

Still to be Allocated:  This option displays only transactions that still require allocations to be made to them.
Run No:  This option allows you to search for and display transactions by the Run Number. A dialog screen will prompt you to enter the run number.
Remove Hold Records:  This option removes from the currently displayed screen any transactions that have a ‘Hold’ status on them. However, it does not remove the hold status from any of the transactions.
Load To Top/O:  This option brings up the Query editor so that you can perform a detailed search and find the transaction(s) you are looking for.

‘Actions’ menu options

The ‘Actions’ menu is the fourth drop-down menu option in the Activity Area of the Allocations screen. This menu allows you to perform certain actions on the currently selected transaction. These actions include:

Reload:  This resets the window to its default settings when you first entered it.
Split:  This splits a transaction into two parts and is used for cases such as retention’s.
Retrieve:  This brings a transaction back to the current list even if it has been 100% allocated and transferred to history.
Hold/Release:  This allows you to place transactions on hold or release them from hold. Note that this changes the transaction status.

Allocations Line Summary

The fifth area of the Allocations screen is the Line Summary section located at the bottom of the screen. This area displays details of the currently highlighted line in the Allocations Lines section, such as the transaction date, reference number, and amount. It also displays the remaining balance and total allocated amount for the transaction in the Transaction section. The Line Summary area is useful for quickly checking the details of a particular transaction or line without having to navigate back to the main transaction inquiry screen.

How to functionality for allocations

Distributing Allocation Amounts

To distribute allocation amounts, follow these steps:

  1. Begin by selecting and highlighting the required line.
  2. If you want to allocate the full amount, simply select the line and the full amount will be allocated.
  3. If you want to allocate a specific amount, right-click on the line to display the “Allocations Dialog” pop-up.
  4. In the pop-up, type in the amount you wish to allocate.
  5. If the remaining balance is less than the amount to be allocated, only the remaining balance will be allocated to the transaction.
  6. Once you have finished allocating the amounts, select the green tick to process the selected allocations for the selected vendor.

Applying Allocation Discounts

To apply allocation discounts in SapphireOne Accounting Software, follow the steps below:

  1. On the Allocations Screen, go to the Activity Area and select the ‘Display’ drop-down menu.
  2. From the options available, select ‘Discounts Only’ to display only those transactions which have discounts applied.
  3. Select the transaction that you wish to apply the discount to.
  4. The ‘Allocation Lines’ section will then show only the discount line that you can allocate the discount to.
  5. Enter the amount of the discount that you wish to allocate to the transaction in the ‘Amount’ field.
  6. Once you have entered the amount, click on the ‘Allocate’ button to allocate the discount to the transaction.
  7. If the transaction is overdue, SapphireOne will not automatically apply the discount. In this case, you will need to select the checkbox on the ‘Allocations Amount’ screen to override SapphireOne and apply the discount.
  8. Once the discount has been applied, the transaction will show as fully allocated with the discount deducted from the total amount.

Spliting a Transaction

To split a transaction, follow the steps below:

  1. Select the transaction you wish to split in the Allocations screen.
  2. Click on the ‘Actions’ drop-down menu in the Activity area of the screen.
  3. Select the ‘Split’ option from the drop-down menu.
  4. Enter the retention amount or percentage in the pop-up window that appears.
  5. Click ‘OK’ to complete the split.

The transaction will now be split into two parts, with the second part being a retention record. It is important to note that the split may be entered as either a dollar amount or as a percentage.

Un-Allocating a Transaction

To un-allocate a transaction in SapphireOne:

  1. Navigate to the Payables menu and select the ‘Allocate’ function.
  2. Go to the ‘Options’ in the top toolbar menu and select ‘Find’, or use the (Command F) keyboard shortcut to display the Open Item Vendors find pop-up and select ‘All Records’ from the drop-down menu. SapphireOne will now list transactions that are fully allocated.
  3. Select the transaction you wish to un-allocate by highlighting it.
  4. Go to the ‘Tools’ function and select ‘Allocation’ from the drop-down menu.
  5. In the ‘Allocations’ pop-up screen, select the line that you wish to un-allocate.
  6. In the ‘Amount’ field, enter a negative value to remove the allocation. For example, if you previously allocated $100, enter -100 to remove it.
  7. Select the ‘OK’ button to confirm the changes.

The allocation for the selected transaction should now be removed.

Creating an Allocations Inquiry Report

  1. To create an Allocations Inquiry report, the Vendor Allocations Inquiry screen must first be displayed.
  2. Next select the Print icon to bring up the print dialog pop-up screen.
  3. From here you are able to select options to print an Allocations Report. This enables you to print different levels of reports showing the linkage of records to the payment. The Report Type Options are listed below.

Report Type Options
Transaction  This report shows the linked transactions allocated to the payment. It provides basic details about the transactions, such as the transaction type, date, and amount.
General Ledger  This report shows the linked General Ledger allocations, providing more detail about the accounts involved in the transaction.
Invoices:  This report shows the linked invoices being paid, including basic details about the invoices such as the invoice number, date, and amount. 
Invoice Lines  This report shows the allocations made to the individual line items on each invoice. It provides more detailed information about the specific items being paid. 
Wide Invoice Lines This report shows the invoice line detail and project details. It provides the most comprehensive information about the allocations made to each invoice, including details about any projects associated with the transaction.

Compulsory Projects checkbox and Allocating 100%

When the Compulsory Projects checkbox is selected in the Projects page, and the allocate 100% option is chosen, SapphireOne will prompt an additional pop-up requesting the compulsory Project ID to be entered.

PAYG indicator.

In case a transaction has 46.5% withholding tax and held items, the Allocations screen would display the letter P in the flags column. Right-clicking on this column will bring up a pop-up window with the PAYG area displayed only if the P flag has been raised. To remove the PAYG component from the transaction, the user should deselect the checkbox.

You can review our Blog and YouTube channel for additional information and resources on SapphireOne ERP, CRM and Business Accounting software.

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