00:00:
00:00: This
00:05: video
00:07: will walk you through the process of applying a partial payment to an invoice when
00:12: you want to custom allocate that payment to specific line items.
00:16: Oftentimes when clients only provide a partial payment towards the full balance of
00:21: an invoice, you may want to choose what line items get applied to first.
00:28: By default, any partial payment will first be applied to expenses
00:34: and then fees.
00:36: In the order of expenses, we'll apply that payment to hard costs then soft costs.
00:43: The fees, including time entries and flat fee services, will then have payment
00:48: applied to them in date order from the oldest to newest.
00:52: This may not work for you if you want to change the way that that allocation is
00:58: applied.
01:00: In order to apply a custom allocation of a partial payment, you'll want to go into
01:05: that invoice itself.
01:09: Once in the invoice, after you've reviewed all the line items, click on the Actions
01:14: button to record your payment.
01:17: The
01:19: payment screen will ask for certain details, including the payer type.
01:23: This is simply selecting if the payer is the primary client or a third party.
01:30: If the payment is coming directly from your primary client, leave that selected and
01:35: your primary client will be auto populated for you if the payment is coming from
01:40: someone other than the primary client you can select someone else from your contact
01:44: list or add them on the fly in this case let's say my payment is coming from my
01:50: primary client miles we're going to deposit this payment to our operating account
01:56: and the payment amount while the invoice total is $1,729.01
02:03: is only going to be $1,500.
02:07: So let's say my client sent in a check for $1,500 to
02:11: partially pay his balance down.
02:14: I'll
02:15: provide the check number and
02:19: the total payment will display according to the payment amount I entered.
02:23: If I have any special notes or I want to change the date of this payment, I can
02:28: change those at this time.
02:29: However, the next most important part of this process is going to be clicking on the
02:34: assign allocation box.
02:36: This will only appear once a partial payment is entered.
02:41: When applying a full payment to an invoice, I will not have this option because the
02:45: full payment will automatically allocate to every line item.
02:50: When I click on Assign Allocation, this will provide me with a list of all the line
02:55: items on the invoice itself.
02:57: I can then go down that list and select which line items I want this payment applied
03:04: to.
03:05: If I want to apply part of the payment to a line item, including removing some of
03:12: the amount, I can do so from here.
03:16: So let's say I only want to apply $500 to this service line item.
03:23: I can switch that to $500.
03:26: Then I can go ahead, I can select my soft cost and I can then select my services
03:37: in the order that they appear.
03:40: Whatever remains
03:43: will be applied to the last line item.
03:46: So while these line items will be fully paid, the bottom one will only be partially
03:52: paid.
03:52: When
03:54: I hit apply allocations and
03:57: save,
04:00: I will then see that payment show up on my invoice with the total remaining balance.
04:07: That total remaining balance can be treated a few different ways.
04:11: I can either apply a payment when the client sends me the rest, I can discount the
04:18: invoice for that much, or I can write off the remaining balance.
04:23: However,
04:24: when I go to places like my fee allocation report, I will now see the distribution
04:30: of that payment in the order that I chose to display it.