Remittance Allocation Statuses

Remittance advice (also referred to as remittance or remit) in the Cash Application module can have one of the following statuses:

• Unmatched – No Customer found to match in YayPay.
• Not Allocated – Linked with the Customer but has not been allocated to any invoice. 
• Partially Allocated – Partially allocated, but there remains a certain unallocated amount.
• Allocated – Fully allocated, and its unallocated amount is zero.

Remittance Allocation Overview

This section outlines how to allocate payments to invoices:

1. Associate remittances with payments.
2. Allocated remittances to invoices.

1. Associating Remittances with Payments

Optionally, associate a remittance with a corresponding payment.

For details, see the Remittance-Payment Association and Payment-Remittance Association‍ articles.

2. Allocating Remittances to Invoices

Allocate a remittance to invoices in one of the following ways:

• Manually – Use the Remittance Details page to manually perform allocations:
  1. Learn about the features of the Remittance Details page in the Remittance Details Page‍ section.
  2. Learn how to use those features to perform manual remittance allocations in the Manual Remittance Allocation Flow‍ section.
• Automatically (for Payments Made via YayPay) – To configure YayPay to automatically allocate remittances to invoices, disable the Auto Generate YayPay Portal Payments‍ feature. When disabled, YayPay automatically does the following:
  1. Creates no payment records in the Cash Application module.
  2. Creates remittance records in the Cash Application module that correspond to payments made via YayPay (on the Statement Page or Customer Portal).
  3. Associates each created remittance record with the customer who made the corresponding payment.
  4. Allocates each created remittance record to the invoices paid by the corresponding payment.
  5. Indicates which remittances were automatically allocated by displaying the YP Payment value in their Source column.
     
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     Note

     • If you enable the Auto Generate YayPay Portal Payments feature, YayPay still automatically creates remittance records in the Cash Application module. However, it does not automatically allocate them to invoices. Instead, it automatically creates payment records in the Cash Application module and automatically allocates them to invoices.
     • Auto-Pay and Pay on Account are two types of payments made through YayPay's Statement page or Customer Portal whose remittances are never auto-allocated. That is because they do not pay for specific invoices. Manual allocation and the Manage Remittance‍ action are enabled for those remittances.
• Automatically (for Email Remittances without Payment Numbers) - YayPay automatically creates a remittance from an email that contains valid invoice numbers and allocation amounts or (payment amounts) but lacks matching payment numbers. To learn how YayPay does that, see the Handling Remittance Emails without Validated Payments‍ section.
  
  When such a remittance is created, YayPay automatically allocates it to the corresponding invoices that were identified based on the data found in the email, taking into account any available discounts.
  
  YayPay requires certain data extracted from a remittance email to perform auto-allocation. It needs one of the following combinations:
  • A minimum of one valid invoice number along with its corresponding invoice allocation amount.
  • A minimum of one valid invoice number and a payment amount.
    
    NOTE: YayPay ignores the 'INV' prefix in invoice numbers, regardless of whether it is capitalized or not, like 'inv' or 'Inv'. This rule applies both to the invoice numbers parsed from emails and those already recorded in YayPay which are used for validation purposes.
    For example, suppose YayPay parses '1234' and 'INV5678' from an email as invoice numbers. If there are invoices labeled 'Inv1234' and '5678' already recorded in YayPay, both these invoice numbers are successfully validated.
  
  

  Auto-Allocation Example

  The following steps demonstrate how YayPay auto-allocates two remittance records (created from one email) without valid payment numbers available:

  1. Finds the following data in a remittance email:
     

     Remittance Record	Invoice Number	Invoice Amount	Payment Amount
     1	INV01	600.00
     2	INV04		1000.00
     	INV05

     
     
  2. Verifies that the following conditions for automatic allocation are met in the system for each identified invoice:
     • It must have an available balance.
     • Each remittance record created must correspond to invoices issued by the same YayPay business.
     • Each remittance record created must correspond to invoices issued for same customer.
       

       Invoice Number	Available Balance	Discount Available	Business ID	Customer ID
       INV01	600.00	0.00	1234	1
       INV04	700.00	0.00	1234	1
       INV05	200.00	0.00	1234	1

       
       
  3. Auto-allocates the created remittance records as follows:
     

     Remittance Record	Invoice Number	Remit Allocation Amount	Remit Discount Taken
     1	INV01	600.00	0.00
     2	INV04	700.00	0.00
     	INV05	200.00	0.00

  
  

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• Automatically (for Email Remittances Received from Payment Platforms) - YayPay automatically creates remittances from emails received from the following payment platforms: Paymerang®, BILL®.
  These automatically created remittances are pre-filled with data such as the Payment Amount value, as described in the the Parsing Email Remittances Received from Payment Platforms‍ section.
  After creating those remittances, YayPay automatically allocates each one to an invoice in these steps:
  1. Parses the following invoice-related data from the email body:
     • Document #
     • Data that corresponds to Remit Allocated Amount and Remit Discount Taken (for Paymerang®)
  2. Allocates a given remittance to an invoice that matches the parsed data in one of the following ways:
     • For Paymerang® - YayPay uses the parsed Remit Allocated Amount and Remit Discount Taken values, applying them directly to the identified invoice.
     • For BILL® - YayPay populates the Remit Allocated Amount and Remit Discount Takenvalues based on the invoice amount and a valid discount (if any is available) in the following way:
       • If the payment amount is sufficient to cover the invoice, the invoice is fully covered during the auto-allocation process.
       • If the payment amount is insufficient, the available payment amount is applied to the invoice, partially covering it.
       • If YayPay detects a valid discount available for the identified invoice in its database, the discount is also applied during the auto-allocation process.
  3. Saves the allocation, displaying all documents that are part of the allocation with the corresponding balances in the list of selected documents.

Remittance Details Page 

Click on the remittance reference number in the grid to open the Remittances Details page :

The page opens in a new browser tab with the following sections:

• Remittance Details – Displays the same information as the Open Remittances grid‍.
  You can also manage remittances‍ (similar to the Open Remittances grid) by clicking on the Manage Remittance icon.
  
• Open Documents Grid – Lists all the open documents (e.g. invoices, credit memos, adjustments, etc.) that you can use to allocate remittances.
  For more information, see the Open Documents Grid‍ section.
• Selected Documents List - Displays documents that have been selected for remittance allocation from the Open Documents grid.

Open Documents Grid

The Open Documents grid lists all the open documents (e.g. invoices, adjustments, etc.) that you can use to allocate remittances.

Columns in the Open Documents Grid

This section lists the columns shown on the open documents grid:

• Document # – Document reference number (from the ERP system).
• Document Type – Document type, e.g. invoice, credit memo, adjustment, payment, deposit application, journal entry, etc..
• Indicator– Icon if the document is already allocated to a remittance:
  1. Hover over that icon to see which remittance.
  2. Click on the remittance number to open that remittance in a new tab.
     
• Customer – Name of the customer related to the given document.
  Clicking on the customer opens the Statement page.
• Document Date – Date on which the given document was created.
• Due Date – Due date of the given document.
  It is mandatory for invoices, and optional for credit memos and adjustments.
• Status – Status of the given document. The possible values include: Current, Overdue, Partial, Pending, Promise to Pay, Dispute, and Open.
  The status is only affected by payment allocations, not by remittance allocations.
• Amount – Total amount of the given document.
• Balance – Document balance that is currently available for remittance allocation based on the last sync with the ERP (comes from the sync with ERP).
• Available Balance – Document balance that is currently available for the next payment (not remittance) allocation. It can be less than the Balance amount because some amount can already be covered by other payments but has not synced with the ERP yet.
• Currency – Currency of the document, e.g. USD, EUR, GBP.
• Discount Date – Final date when the given invoice can be paid in order to have a discount. It is only applicable to invoices.
• Discount Available – Discount that will automatically be applied to the Remit Discount Taken value if the payment date is earlier than or equal to the discount date. It is only applicable to invoices. 
• Discount Taken – Actual discount that was applied to the invoice during the payment allocation. This can be more than the Discount Available value if a user gives a higher discount. It is only applicable to invoices.
• Allocated Amount – Amount that was already allocated to the given document during the payment allocation.
• Remit Discount Taken – Actual discount that was applied to the invoice during the remittance allocation. This can be more than the Discount Available value if a user gives a higher discount. It is only applicable to invoices.
  For more information, see the Remit Discount Taken‍ section to learn about this column.
  
• Remit Allocated Amount – Amount that was allocated to the given document during the remittance allocation.
  For more information, see the Remit Allocated Amount‍ section to learn about this column.
• Invoice Level Custom Fields – Additional information (beyond the standard invoice data) associated with each individual invoice. You can configure the invoice level custom fields in Settings | ERP/CRM Custom Fields.
  To learn how to configure invoice level ERP/CRM custom fields, see the appropriate article depending on the ERP system that you are using:
  • Synchronizing Invoice Level Fields‍ (NetSuite®)
  • Invoice Level Custom Fields‍ (Sage Intacct®)
  • Bringing over Custom Fields through CSV Files‍ 

Customizing the Open Documents Grid

1. Select which columns to display:
   1. Click on the Select Columns icon.
      
   2. Select all the columns you wish to display.
   3. Click on Apply Changes to confirm.
   4. Click on the Reset Columns to Default icon if you want to go back to displaying the default columns.
      
2. Expand the grid for a closer view by clicking on the Expand Grid icon.
   
3. Sort the grid’s data using a specific column:
   1. Click on the name of the column you wish to sort by in descending order.
      Sorting is available for the following columns: Document #, Customer, Document Date, Due Date, Amount, Balance, Available Balance, Discount Date, and Invoice Level Custom Fields.
   2. Click on the name again to sort in ascending order.
   3. Click on the name again to stop sorting by the given column.
4. Rearrange the order of the columns in the grid:
   1. Click and hold inside the header of the column you wish to move.
   2. Drag the column to the desired spot.

You can filter the data displayed in the Open Documents Grid using the Filter icon.

The Filter icon is available for the following columns:

• Document Type – Selects the type of documents you want to display in the grid.
  
• Customer – Selects the customer whose documents you want to display in the grid.
  
• Document Date – Defines the time period in which the documents you want to display in the grid were created.
  
• Due Date – Defines the time period in which the documents you want to display in the grid have their due date.
  
• Available Balance – Defines the range of available balances applicable to the documents you want to display in the grid.
  
• Invoice Level Custom Fields – Selects the custom field value belonging to the documents you want to display in the grid.

Manual Remittance Allocation Flow

To manually allocate a remittance to invoices, perform the following steps on the Remittance Details page:

1. Check the following information:
   
   • Payment Amount – Indicates the amount that has been paid by the payment related to the given remittance.
   • Unallocated Amount – Indicates the amount available for allocation to invoices.
     Initially, this amount is equal to the payment amount. It decreases as you allocate invoices to the remittance until you reach 0.
   • Documents that can be used in the remittance allocation.
2. Select the invoices you want to allocate the remittance to from the Open Documents Grid.
   To allocate a remittance to an invoice, the Available Balance value of the invoice can not be zero.
3. Check that the selected invoices have appeared in the upper section of the page along with balance details and two additional fields:
   • Remit Discount Taken‍
   • Remit Allocated Amount‍
     
4. Optionally, select documents other than invoices (adjustments, credit memos, etc.) to impact the allocation process as follows:
   • Documents with a positive balance increase the amount to be paid, and decrease the unallocated amount of the remittance.
   • Documents with a negative balance decrease the amount to be paid, and increase the unallocated amount of the remittance.
   • Discounts only apply to invoices with positive amounts (not to any other document types).
   • The initially suggested Remit Allocated Amount value for other documents equals their Available Balance value.
     Edit the Remit Allocated Amount field if required. It cannot exceed the Available Balance value.
     
5. Check that the Unallocated Amount value of the remittance is automatically recalculated as you select documents from the Open Documents grid.
   
6. Ensure the Unallocated Amount value meets the following conditions to be able to save the allocation:
   
   • It must not be negative.
   • It must be less than the Payment Amount value.
     
7. Click on SAVE to save the allocation.
8. Learn about what happens when you save the allocation in the Allocation Outcome‍ section.

Remit Discount Taken

This section explains the behavior of the Remit Discount Taken field that appears in the upper section of the Remittance Details page when invoices are selected for remittance allocation:

• The field is available for invoices with a positive balance.
• The system automatically populates the field.
• The field behaves in the following way:
  • If an invoice has a Discount Available value of 0.00, the Remit Discount Taken value is also 0.00.
  • If a discount has expired (check the Discount Date column), the Remit Discount Taken value is 0.00.
  • If a discount has already been applied to a given invoice within the allocation of a payment before the allocation of the corresponding remittance, the Remit Discount Taken value is 0.00. This prevents a discount from being applied several times to the same invoice.
  • For a valid discount:
    • If the Unallocated Amount value of the remittance is less than the difference between Available Balance and Discount Available, the Remit Discount Taken field is pre-filled with 0.00.
    • If the Unallocated Amount value of the remittance is equal to or greater than the difference between Available Balance and Discount Available, the suggested value for Remit Discount Taken is the same as the Discount Available value.
• You can edit the field to suit your needs.

Remit Allocated Amount

This section explains the behavior of the Remit Allocated Amount field that appears in the upper section of the Remittance Details page when invoices are selected for remittance allocation:

• It is automatically populated as the documents are selected.
• The system suggests the Remit Allocated Amount value of the invoice must be equal to its Available Balance value minus the Remit Discount Taken value (if any). This applies to all selected invoices unless the Remit Allocated Amount value for them exceeds the Payment Amount value. If the Available Balance value of the selected invoices is more than the Payment Amount value, the system suggests the maximum Remit Allocated Amount value must not go beyond this value.
• If the Payment Amount value is exceeded, you cannot save such an allocation.
  

Edit the Remit Allocated Amount value if required, but the following must apply:

• Value van not be zero.
• Remit Allocated Amount + Remit Discount Taken for an invoice must not exceed its Available Balance value.

Allocation Outcome

This section describes what happens when you save a remittance allocation:

• The Unallocated Amount value of the remittance is recalculated.
  If it remains more than zero, you can use the remaining amount in another allocation.
• New values of Remit Allocated Amount and Remit Discount Taken (if the discount was applied during allocation) are displayed in the Open Documents grid.
• The allocation status of the remittance becomes Allocated or Partially Allocated depending on whether the whole remittance amount was allocated or not. 
• For Allocated and Partially Allocated remittances, on the Remittance Details page, all documents involved in allocation are displayed.

Modifying Remittance Allocation

You can modify the allocation of remittances after they have been saved and before they are closed. A remittance is closed when YayPay finds the corresponding payment in the system and links the two records.

To learn more about how remittances become closed, see the Remittance-Payment Association‍ article.