Introducing payment allocation

Payment allocation lets you distribute a single payment across multiple bank accounts based on defined rules. This is useful when regulations require separating specific components of a payment, such as taxes, social security contributions, and service fees, for example when paying (sub-)contractors in the Netherlands.

Payment allocation types define how allocations behave, for example whether entries can be modified or removed after posting.

Payment allocations assign a type to a vendor or customer account and define the calculation, due date, and recipient.

For the general setup and for tasks that apply to all allocation types, see Setting up payment allocation for partial payments in Continia Banking.

You can also create custom allocation types to cover other scenarios, such as VAT-only calculations.

To preview payment allocations on invoices

The Payment Allocation Preview FactBox on the Purchase Invoice and Sales Invoice pages shows how payment allocations are created based on the current settings. This lets you verify the allocations before you post the invoice, instead of posting first and then checking the resulting allocation entries.

If the due dates of the allocation entries are incorrect, the entries are marked red in the FactBox.

Predefined payment allocation types

Continia Banking includes predefined payment allocation types for common scenarios. You can find them on the Payment Allocation Types page. You can also create custom types. See Setting up and managing payment allocations.

VAT only

The VAT ONLY type allocates the VAT amount of a payment. The allocation uses the VAT from the actual invoice, so the allocated amount is correct regardless of the VAT rate on the invoice. See Setting up payment allocation for VAT only.

Partial

The PARTIAL type splits a payment into separate entries with different amounts and due dates. See Setting up payment allocation for partial payments. See Setting up payment allocation for partial payments.

BASt

The BAST type handles German construction withholding tax (Bauabzugsteuer, or BASt) at a fixed rate of 15 percent. See Setting up payment allocation for BASt. See Setting up payment allocation for BASt.

G account

The G-ACCOUNT type transfers a percentage of each vendor payment to a G account. A G account is a bank account used in the Netherlands to hold funds for tax and social security payments. See Setting up payment allocation for a G account. See Setting up payment allocation for G accounts.

Related information

Setting up and managing payment allocations
Setting up payment allocation for VAT only
Setting up payment allocation for partial payments
Setting up payment allocation for BASt
Setting up payment allocation for a G account