COMING SOON Allocating Payments to the Tax Portion of an Invoice

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For our Asia-Pacific customers, the term "Trust Account" is used, while European customers refer to it as "Client Account". It's important to mention that the Client/Trust Accounting functionality does not apply to customers in North America. For further information on regional terms, check out our Glossary of Regional Terminology.

Occasionally, you might need to allocate a payment specifically to the tax portion of an invoice before addressing the net amount. This article outlines the method to modify payment allocations within your Client or Trust Account to cater to such requirements.

Before you start allocating payments, you'll need to enable the feature in your Client/Trust Account settings. To do this:

  1. Navigate to Settings.
  2. Select Client / Trust Accounts.
  3. Choose Edit Client / Trust Account.
  4. Find and tick the checkbox for 'Allow payments to be allocated separately to net and tax'.


Allocating Payment to an Invoice

When you're ready to allocate payments towards the tax portion of an invoice, here’s what you need to do:

Reviewing and Modifying Invoice Payment Allocations

To edit the allocations for a particular invoice:

  1. Identify and select the invoice(s) you wish to pay.
  2. Click on the edit icon to open the invoice details.
  3. Notice that the payment will be automatically distributed across all line items. You'll need to modify this.

Customizing Payment Allocation

To allocate the payment specifically to the tax portion, follow these steps:

  1. Click on the Clear all amounts button to reset the allocated amounts to zero.
  2. Under Line Description use the + button to add the desired payment amount to the tax line of the invoice, or the - button if you need to decrease the amount.
  3. Ensure that the payment is fully allocated with no remaining balance. The save button will become active when this is achieved.
  4. Click Save to finalize your adjustments. You can then continue to the payment details step.


After saving your allocation preferences, proceed with the payment process as usual. Your payment will now prioritize the tax component of the invoice, keeping your accounts precise and up to date.

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