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

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

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Choose the relevant bank account from the list of accounts.


Then, select the transaction that represents the full amount that your customer paid you.


From the ‘Invoice’ drop-down, select the first invoice to be paid from the transaction.


Select ‘Explain Transaction’.


FreeAgent will then create a transaction on a new line for the amount remaining to be explained. You can repeat this process until all the invoices for that payment have been split out.


It's fine to have multiple entries explaining a single transaction like this - the only important thing is that the transaction is fully explained.

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 equivalent amount of the first invoice in the foreign currency using the additional ‘Value’ box.

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

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