Cloudy Revenue Inventory Knowledge Base

Allocation

The Allocation object records how a received payment is distributed across financial documents such as Invoices, Invoice Lines, Bills, Bill Lines, Credit Notes, and Debit Notes. It provides complete visibility into payment allocation, ensuring accurate tracking of outstanding balances and maintaining financial reconciliation within Cloudy Inventory.

Each Allocation record captures the allocated amount, allocation date, related payment, associated financial document, legal entity, and allocation status. This enables businesses to track how customer or vendor payments are applied across multiple transactions while maintaining a complete audit trail.

Key Purpose of Allocation

• 💰 Allocate customer payments to one or more Invoices or Invoice Lines.
• 📄 Allocate vendor payments to Bills or Bill Lines.
• 🔄 Apply Credit Notes and Debit Notes against financial transactions.
• 📊 Track the amount allocated from each payment.
• 🏢 Maintain allocation records by Legal Entity.
• 📋 Provide a complete audit trail for payment reconciliation.
• 📈 Calculate outstanding balances after allocations.
• 🔍 Improve financial reporting and payment visibility.

Use Cases in Cloudy Inventory

• 💵 Allocate a single payment to one or multiple Invoices.
• 📑 Allocate payments at the Invoice Line level for partial settlements.
• 🧾 Apply vendor payments against Bills and Bill Lines.
• ➖ Offset outstanding balances using Credit Notes.
• ➕ Allocate Debit Notes where additional charges exist.
• 🏢 Manage allocations separately for each Legal Entity.
• 🔄 Support partial payment allocation across multiple financial documents.
• 📊 Generate accurate payment reconciliation and allocation reports.
• 🔍 Maintain a complete history of every payment allocation.

Example Business Scenario

• Test Customer Inc. purchases 10 Sedan Cars and receives an Invoice for USD 1,000.
• The customer makes a partial payment of USD 600 through the configured Stripe Payment Gateway.
• A Payment record is successfully created with Status = Paid.
• Cloudy Inventory automatically creates an Allocation record to apply the received payment against the Invoice.
• The Allocation record contains the following details:
  • Allocation Name: ALLOC-2026-0001
  • Account: Test Customer Inc.
  • Payment: PAY-2026-0001
  • Invoice: INV-2026-0006
  • Allocated Amount: USD 600.00
  • Allocation Date: 09/07/2026
  • Legal Entity: Gateway Entity LLC
  • Status: Allocated
• After allocation:
  • The Invoice Outstanding Balance becomes USD 400.
  • The Payment is marked as fully allocated.
  • The allocation history provides a complete audit trail for future reconciliation and reporting.

Allocation Status

Best Practices

• Allocate payments immediately after successful payment capture.
• Verify that the allocated amount does not exceed the available payment amount.
• Use Invoice Line allocations when only specific products or services are being settled.
• Maintain accurate allocation records for audit and financial reconciliation.
• Apply Credit Notes and Debit Notes before processing additional payments when applicable.
• Keep allocation records aligned with the appropriate Legal Entity.
• Monitor partially allocated payments to ensure outstanding balances are settled promptly.
• Regularly review allocation records to maintain accurate financial reporting and customer account balances.