Small Business Accountants

What are Unallocated Payments?

An unallocated payment is money received from a customer that has not yet been matched to a specific sales invoice in the accounting system. Common causes include payment on account ahead of invoicing, a wrong or missing reference, part-payments covering multiple invoices, or credit notes not yet applied. Unallocated balances distort the aged debtor report and should be resolved quickly by matching to an invoice or refunding.

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What are Unallocated Payments? - GoForma Small Business | UK Accountants & Tax Advisors
This article is part of our Small Business Accounting guide — your essential resource for running a small business.

<p>Unallocated payments are where the client has given you more money than they owe.</p>

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