Tasaheel ERPCustomer Receipts and Supplier Payments: Allocating to Invoices
How to record customer receipts and supplier payments: receipt and payment vouchers, allocating to the oldest invoices, payments on account, statements and ageing.
By Sherif Fadl — Founder, Tasaheel ERP
A payment you receive from a customer is not just an amount added to cash: you need to know which invoice it settled. Otherwise the customer's statement is right in total, while the ageing report shows old invoices as "overdue" although they are paid.
Receipt and payment vouchers
- Receipt voucher: an amount that came into cash or the bank from someone — debit cash, credit that party.
- Payment voucher: an amount that went out of cash or the bank — debit the party, credit cash.
Each voucher has a sequential number, a date, a reference (cheque or transfer number) and a description.
Receiving from a customer: allocating to invoices
When you collect from a customer:
- Choose the customer, enter the amount and the account it was deposited in.
- Allocate it to open invoices — automatically to the oldest first, or pick specific invoices.
- Anything beyond the invoices stays as a payment on account to be applied later.
The entry: debit cash or bank, credit the customer (with the party). On the customer's statement the payment appears as one line for the total, so reconciliation stays clear.
Paying a supplier
The same way: choose the supplier and the amount, allocate it to their invoices, and the rest stays on account. The entry: debit the supplier (with the party), credit cash or bank.
Common mistakes
- Recording a receipt as a general journal entry without linking it to the customer, so their balance doesn't change.
- Leaving a receipt unallocated, so old invoices show as overdue in the ageing.
- Mixing up cash and bank for transferred amounts.
How Tasaheel Accounts manages receipts and payments
- Customer receipt and supplier payment: open invoices with date, due date, remaining amount and days, «allocate automatically to the oldest», and indicators for amount received, allocated to invoices and unallocated. Supplier payments go through the approval workflow if you turn it on.
- Receipt voucher and payment voucher for other amounts: the cash or bank account, lines with account, party and cost centre, save and post or save as draft, and print the voucher.
- Sequential numbering of vouchers, and forms and printing with several designs and the amount in words.
Read also receivables and payables ageing and bank reconciliation, or learn more about Tasaheel Accounts.
FAQ
Why allocate a receipt to invoices?
So paid invoices are closed and debt ageing is correct, not just the balance.
What if the customer pays more than their open invoices?
The difference stays as a payment on account, applied to later invoices.
Can I choose specific invoices instead of the oldest?
Yes. Automatic allocation to the oldest is a suggestion you can change per invoice.
Is the voucher printed with the amount in words?
Yes, from forms and printing, with several designs.
Try it in Tasaheel: create a free account, record your first customer receipt and allocate it to their invoices.