RE: Supplier Payment Without Invoice
By allocation it means allocating against an invoice, so yes an invoice is required. By making a payment you have simply done the following:
Dr Suppliers
Cr Bank
both of which are balance sheet accounts. The debit balance on suppliers will remain there apparently as an asset (as far as the system is concerned you made an unnecessary payment to the supplier and they owe you that money). By posting an invoice you have done:
Dr P&L account (I appreciate it could be for stock but eventually that will hit the P&L)
Cr Suppliers
thus removing the debit from the suppliers account, but the debit and the credit need to be "allocated" together in the purchase ledger so they no longer appear as outstanding.
Sorry if I have misunderstood and am stating what you already know, but I hope it helps,
Tim
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