When a supplier payout is made, the payment defaults to cover the first transactions first (based on the FIFO method: First In, First Out).
For example, say you have the following two transactions with the supplier:
1) $211.96
2) $1,299.62
Then you pay out $500 towards your balance.
The system will take $211.96 off the first transaction and apply the remaining $288.04 to the second transaction.
Break Link
To apply the payment differently (in this example, you want to apply the entire $500 only to the second transaction), you need to first break the default payment links so you can apply it manually:
- In the Supplier page, go to the Link Payments section
- Go to the Break Link tab
- Select the transactions you want to break and click the Break Link button on top:
Create Link
Now you can create the new link:
- Go to the Create Link tab
- Select the payment from the Debit Entries
- Select the transaction from the Credit Entries that you want to apply it to
- Input the amount you want to apply to the appropriate transaction in the Link Amount column
- Select Create Link
The payment will now be applied to the correct transaction.
- To link payments for customers, see the general Link Payments page.