Allocating payments to Multiple Invoices from the Bank Account page

Hi, could anyone kindly help with this query/issue please?

I need to allocate a credit payment to multiple invoices for multiple clients but the system does not give the choice, despite the fact that the Tagging Description is: “Pay down multiple invoices or assign to a client account”.
Apparently one can only select One client account, which would only allow to pay the relevant invoices but lock the remaining credit.
There is no option to just pay Multiple invoices, regardless of which client account they belong or to select Multiple Clients too.

I have already looked at the suggestion in the below topic:

However I am not happy with that convoluted work-around. The initial reason for Tagging transactions is that we could upload bank statements and just tag transactions so I don’t really wish to delete an original transaction, especially of card services, and enter false manual ones.

Could an option to tag Multiple Invoices regardless of Client Account be added please? Just a list of all outstanding invoices, regardless of client.

Thank you in advance for your help

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May I ask why you have a single payment on your bank allocated to multiple clients?

Of course,

We receive card payments via merchant card reader/services, regardless of clients. So all card/credit sales would go down the same channel. It is a standard way of operating.

Thank you

Yes this is a very common process in bookkeeping, however splitting up the entry on the current account is not the way to handle this, as you still need to account for merchant fees.

The way to do this is to setup a dedicated merchant account, this becomes a type of bank account to breakdown all the individual client activity with the merchant provider. This process is explained in more detail here:

Thank you, I can test this, however I believe the original problem still exists.
To elaborate, all card sales for a day come into the current account in one entry/credit, PDQ entry.
Now, whether I try to tag this from the Current Account or from a Merchant Account I will still be unable to tag that single entry to multiple invoices, right?

Not exactly…

Let’s say you make 10 sales today each totaling £100 and collect via a PDQ, perhaps 3 days later you will receive a remittance into your current account for £1,000 less a 3% fee to Streamline (I’m using Streamline in this example but any card provider will be the same)… so £970 arrives in your bank account. You have no way to split that £997 over 10 invoices totaling £1,000.

So essentially what you do is pay each of those invoices into the merchant bank account. The merchant account now has a positive balance of £1,000. Now when Streamline remit the balance you enter a bank transfer on the account for £970 out and tag it as a bank transfer to your current account. Or just find the money in on your current account and tag it as a transfer from the merchant account (it works either way around).

Now the merchant account balance is £30, this is equal to the fee paid to Streamline, so you would enter a £30 deposit on the merchant account and tag it as a supplier payment to Streamline under “Bank Charges”.

Everything is now accounted for with the merchant account balance back to zero.

Another reason why you do it this way is if your card provider is deferring your payment for x days (which they usually do) in accounting terms this is an asset so it must be tracked. Having it lodged on a merchant account at the point of sales turns that account into an asset.

Hope that makes sense!

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Thank you for explaining but let me clarify one point: my merchant services charges are not deducted from each transaction or each PDQ credit entry; I get charged monthly directly from the current account so let’s exclude any charges.
That said, with regards to every merchant credit PDQ entry, it will always refer to one day sales and they can be of multiple invoices and multiple clients so this is what I need to allocate.
I need to allocate one Merchant PDQ credit entry to multiple invoices on multiple clients. Do I make sense?

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The above still applies, you just need to amend the exact steps slightly to suit. The end result is still the same.

Yep makes perfect sense, although you’re not splitting the payment on your bank. If you carefully go through the guide you will see that the individual payments are made into the Merchant account, the entry on your current account is just a bank transfer.

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