Payment Allocation Overview

Monika

Updated August 19, 2023 19:01

Payment Allocation allows you to "allocate" a payment or a refund to a specific revenue item. This article explains how to enable this feature on Cloudbeds PMS and how to use it.

Payment allocation is used to track/record payments for separate items.

For example, your guest purchased a soda and a towel, and wants to pay partially the outstanding balance. To keep a record of when and which item was paid, you may allocate the partial payment to the soda or the towel.

How to Enable/Disable Payment Allocation

This is an optional feature and can be manually enabled/disabled. By default, it is disabled for all properties.

Click Manage (gear icon)
Go to Property Configuration and select General System Settings.
Under Miscellaneous Preferences, switch ON or OFF the Payment Allocation toggle.
Click Save.

How Payment Allocation Works

1. “Allocate Payment” inside “Add Payment/Refund” window

On the folio or house account, click Add or Refund Payment.
Enter the payment details and make sure the option Allocate Payment is checked (it is checked by default, un-check it if you don't wish to allocate this transaction)
Click Continue to submits the payment — if successful, a new window will open to allocate the transaction.

Allocation cannot be made when authorizing a card without processing an actual payment.

Selecting the Authorize card option will un-check the box Allocate Payment and will not open the Allocate Payment window.

The window displays all posted and pending transactions from the selected folio that have not yet been allocated. Select the items you want to allocate the payment to.
Confirm the amount of payment allocated to an item. You may correct it if needed.
Click Submit to allocate the payment or Cancel if you prefer not to allocate — the transaction will be posted to the folio but will not be allocated. You're still able to allocate it at a later time.

2. “Allocate Payment” when capturing payment on the Credit Cards tab

This option is only available for accounts with payment processing enabled.
You can allocate payment only when charging a card, not when authorizing.

Go to Credit Card tab
Select the credit card to charge.

You should have a credit card added and authorized before charging it. Check: Option 2. Processing payment from 'Credit Cards' tab

Click Capture to add the payment using payment processing.

Edit/enter the capture amount.
Make sure that the box Allocate Payment at the bottom of the window is checked (it will always be checked by default, un-check it if you do not wish to allocate this payment.
Click Capture.

The window displays all posted and pending transactions from the selected folio that have not yet been allocated. Select the items you want to allocate the payment to
Confirm the amount of payment allocated to an item. You may correct it if needed.
Click Submit to allocate the payment or Cancel if you prefer not to allocate — the transaction will be posted to the folio but will not be allocated. You're still able to allocate it at a later time.

3. “Allocate Payment” inside “Add Item” window

Allocate payment option is available when you add items to the folio and collect the payment immediately.

On the folio, click Add Item.

Select an item to add.
Select the Payment Type.
Make sure the box Allocate Payment is checked (it is checked by default, un-check it if you do not want to allocate this payment).
Click Add Item.

The window displays all posted and pending transactions from the selected folio that have not yet been allocated. Select the items you want to allocate the payment to
Confirm the amount of payment allocated to the item. You may correct it if needed.
Click Submit to complete the allocation.

Both the charge and the payment transactions will appear in the folio.

4. "Allocate Payment" already posted on the folio

Already posted payment or refund appear on the reservation folios with a gear icon. Clicking on the icon allows you to allocate or re-allocate the transaction.

Go to a folio.
Click the gear icon next to the payment and select Allocate Payment.

The window displays all posted and pending transactions from the selected folio that have not yet been allocated. Select the items you want to allocate the payment to
Confirm the amount of payment allocated to an item. You may correct it if needed.
Click Submit to allocate the payment.