How do I change my payment allocation method?
Organization
An allocation is an amount that has been set apart, or earmarked, to distribute to specific accounts. The Payment Allocation Method is the formula the allocation will use to allocate payments.
Watch a video
For more information, see the 2018 Business License Refresher Training (1h31m) at 1m35s.
Selecting my payment allocation method
1. Open Connect Business License > Organization > Organization.
2. On the Organization tab, set up the Payment Allocation Method box.
Payment allocation method
3. Select a payment allocation method
All license billings then penalty billings
All penalty billings then license billings
License billings then penalty billings in date order
Penalty billings then license billings in date order
4. Click Save (CTRL+S).
The payment allocation is set and saved.
2020Mar03
Options
All license billings then penalty billings
Pay billed amounts first, then pay penalties.
All penalty billings then license billings
Pay penalties first, then pay billed amounts.
License billings then penalty billings in date order
Pay billed amounts first, then pay penalties starting with the penalty with the oldest transaction date.
Penalty billings then license billings in date order
Pay penalties first, then pay billed amounts starting with the billed amount with the oldest transaction date.
Prorated basis in date order
A prorated amount is an amount that assess the billed amount proportionally based on the assigned date. When an owner or business makes a payment that is less than the business's balance, the system will calculate the balance for each license, by license type and rate, and penalty billings. Then, the system allocates the payment to each license based on a percentage. To find this percentage, the system divides the total balance for each license by the total balance for the business. Then, the system multiples the payment amount by the percentage to calculate the amount to pay off each license balance.
Example: A gas station has a liquor license, food license, and commercial license. The total balance is $700.00.
Liquor license - $200.00
Food license - $200.00
Commercial license - $300.00
To calculate the percentage, divide the license amount by the total balance. Like this...
Liquor license - $200 / $700 = 0.285 or 28.5% Food license - $200 / $700 = 0.285 or 28.5% Commercial license - $300 / $700 = 0.428 or 42.8%
When the gas station pays $400, the system will allocate the payment by multiplying the payment amount by the license percentage. Like this...
Liquor license - $400 x 0.285 = $114.00
Food license - $400 x 0.285 = $114.00
Commercial license - $400 x 0.428 = $172.00
Finally, the system adjusts the license balance. Like this...
Liquor license - $200.00 - $144.00 = $56.00
Food license - $200.00 - $144.00 = $56.00
Commercial license - $300.00 - $172.00 = $128.00
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