What are unallocated balances?

Unallocated balances are amounts recorded against a supplier that haven’t yet been applied to a specific invoice.

Common examples include:

Credit notes that haven’t been applied
Prepayments made to a supplier
Overpayments on previous invoices

Before you start

Before applying unallocated balances, make sure:

Your accounting software (for example, Xero) is connected to Dext
Unallocated balances already exist for the supplier
The invoices you want to pay are included in a payment run

Important: Dext Payments is only available for Xero-integrated UK clients.

Apply unallocated balances during a payment run

You apply unallocated balances while reviewing invoices in a payment run, before completing the payment.

Go to the Payments workspace.
Select the supplier invoices you want to pay.
Click Pay selected.
On the Review payment run page, find invoices with an unallocated balance (the invoice will be marked with an amber warning triangle)
Select the warning icon to open the Allocate credits panel
Review available unallocated balances (credit notes, prepayments, or overpayments)
If an invoice amount exactly matches an available unallocated balance, Dext highlights it and moves it to the top of the list to help you allocate it quickly.
Enter the amount to apply (full or partial)
Select Allocate to confirm.

Allocate credits panel displaying unallocated balances and fields to enter allocation amounts

Important: Unallocated balances must be applied before you complete the payment run. You can’t apply them after payment is processed.

How unallocated balances change the payment amount

When you apply an unallocated balance, Dext automatically reduces the amount due for that invoice.

The invoice balance is reduced by the allocated amount
The payment amount updates instantly
The total value of the payment run is recalculated

Example:

Invoice total: £100
Unallocated balance applied: £20
Amount to pay: £80

Payment run screen showing invoice amount reduced after applying unallocated balance

Where to view applied unallocated balances in Dext

You can view applied unallocated balances directly in the invoice details in Dext.

Open an invoice from a payment run or the supplier invoices page
Go to the Allocated credits tab

Here you’ll see:

Each applied unallocated balance (for example, credit notes)
Reference and amount
Date of allocation
A View option to open the allocation in Xero

Allocated credits tab showing applied balances with reference, amount, date, and View button.

Where to see allocated and paid amounts

You can also see how unallocated balances affect invoice totals in the invoice details.

In the Details tab of the invoice, you’ll see:

Total amount
Paid amount
Allocated credit amount
Due amount

Invoice details panel showing total amount, paid amount, allocated credit amount, and due amount fields highlighted.

This gives you a full breakdown of how the invoice has been settled.

Review unallocated balances before creating a payment run

You can review all applied unallocated balances before completing the payment run. When you select Create payment run, Dext checks for any unallocated balances and asks whether you want to continue.

Select Review to open the allocation flow and apply additional unallocated balances before proceeding. You can also choose to continue creating the payment run without applying them.

Before you proceed, you can review:

Applied unallocated balances, such as credit notes
Allocated amounts
Remaining balance, if there is one

Review payment run prompt showing outstanding unallocated balances with options to review or continue.

Important: Reviewing unallocated balances before creating the payment run helps make sure the payment amount is correct before money leaves the business.