Pay off multiple invoices with one payment

This article explains what to do when you receive a single payment from a customer that pays off more than one invoice.

If the transaction needs to be allocated to a single credit note, read how to match a credit note to an invoice instead. If the transaction needs to be allocated to multiple credit notes, read how to pay off multiple credit notes with one payment instead.

If the payment was paid into a GBP bank account for invoices in a foreign currency, you’ll need to enter the equivalent value in the GBP currency.

If the fees have been deducted from the transaction prior to receiving the funds, you'll need to split the transaction to allocate the fees first before following the steps below to ensure the invoices are shown as fully paid. Please note that this only applies to transactions that have been imported by a bank feed or uploaded from a bank statement.

If you’ve manually added a transaction, for example in a cash account, you'll need to either add separate transactions for each invoice, or upload the transaction and split it between the invoices as described below.

Navigate to the 'Banking' tab at the top of the screen and select 'Bank Accounts' from the drop-down menu.

Choose the relevant bank account from the list of accounts and click on the transaction that represents the full amount that your customer paid you.

If the Guess functionality has already suggested an explanation for to the transaction, you'll need to remove the explanation first.

Next, click on ‘Adjustments’ and select ‘Split multiple items’ from the drop-down menu.

‘Invoices’ will be selected as default on this page.

The page will then show you a list of open and overdue (not marked as paid) invoices to select from.

Select the checkbox next to each invoice that you want to split the transaction between. To quickly select all the invoices on a page, tick the box that appears to the left of the ‘Due date’ column.

You'll be able to select a maximum of 100 invoices at a time.

The blue bar will indicate the number of invoices selected and the total value of the selected invoices.

If the full amount of each selected invoice is being paid from the transaction, select the ‘Apply split’ button.

If you need to adjust the amount to apply to any invoice that is being paid, select the ‘Edit split’ button.

If you select the ‘Edit split’ button, a pop-up window will appear where you can edit the amount to allocate to each selected invoice. Once the values have been updated, select 'Apply split'.

If the total of the selected invoices exceeds the transaction value, you'll be prompted to manually allocate the transaction to partially pay some of the invoices.

Once you’re happy with the amount allocated to each invoice, select ‘Apply split’.

Finally, wait for the transaction to be allocated between the invoices. Please note that this may take a few minutes if lots of invoices are being paid.

Once the changes have been updated, if it was successful, you'll see a banner notifying you that the desired number of invoices have been fully paid or partially paid.

If any of the invoices couldn't be marked as paid from the transaction, you'll see a banner notifying you that the invoice couldn't be marked as paid and signposting you to the details on why it was unsuccessful.

When you go back to Banking, you'll see the bank transaction has been allocated between the selected invoices.

Paying off multiple foreign invoices with one payment paid into a GBP bank account

If you’re paying off multiple invoices in a foreign currency with a single payment paid into a GBP bank account, you’ll need to enter the GBP equivalent amount of the first foreign currency invoice in the 'Value' box.

Select ‘Explain transaction’ and repeat for each invoice you want to allocate the payment to.