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 visible in the Supplier invoices page
Important: Dext Payments is only available for Xero-integrated UK clients.
Review and allocate unallocated balances before creating a payment run
You can review and allocate unallocated balances directly from the Supplier invoices page, without needing to start a payment run first. This is the recommended approach — allocating credits before you create a payment run means the payment amount is correct before money leaves the business.
To open the Unallocated credits page:
Go to Payments in the main navigation.
Select Supplier invoices.
Find the Unallocated balance summary card at the top of the page.
Select View to open the Unallocated credits page.
The Unallocated credits page lists all unallocated balances across your suppliers. Each row shows the supplier name, date, kind (credit note, prepayment, or overpayment), reference, total amount, amount already allocated, and remaining unallocated amount.
You can filter the list by supplier, reference, date, and amount using the filter icon.
Allocate a credit to an invoice
To allocate a credit to one or more open invoices:
Find the credit you want to allocate and select Allocate.
The Allocate credit modal opens, showing all open invoices for that supplier.
In the Allocate field next to an invoice, enter the amount you want to apply. You can apply a full or partial amount — the maximum is the lower of the invoice due amount or the remaining credit.
The modal shows Available credit, Remaining credit, and Total allocated amount at the bottom, updating as you enter amounts.
Select Allocate next to the invoice to confirm that line, then select Continue when you're done.
Note: If a supplier has no open invoices, the modal will be empty. You can only allocate credits against open invoices.
Apply unallocated balances during a payment run
You can also apply unallocated balances while reviewing invoices in a payment run, before completing the payment.
On the Review payment run page, invoices with available unallocated credits are marked with an amber warning triangle. A tooltip shows the total value of unallocated credits available for that supplier.
Go to Payments and select Supplier invoices.
Select the 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 next to the due amount).
Select the warning icon to open the Allocate credits modal.
The modal lists available credit notes, prepayments, or overpayments for that supplier, showing the outstanding credit for each.
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.
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
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
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
This gives you a full breakdown of how the invoice has been settled.
Complete the payment run
After applying unallocated balances, complete the payment run as usual:
Review all adjusted invoice amounts
Confirm the total payment value
Complete the payment run
Send remittance advice to the supplier
Dext will:
Pay only the remaining balance after allocations
Reflect the allocation in your accounting software
Include applied balances in the remittance advice
What happens after applying the unallocated balance
After you apply an unallocated balance and complete the payment:
The balance is allocated in your accounting software
The remaining balance is updated
The invoice is marked as partially paid or paid
Note: Some unallocated balance details (such as certain references) may not appear if they are not returned by your accounting software.
Limitations to be aware of
There are some current limitations:
You cannot remove or unallocate a balance in Dext
Changes must be made in your accounting software
Important: If you need to change an allocation, update it in your accounting software and then refresh your data in Dext.
What to do next
After applying unallocated balances:
Check all adjusted invoice amounts
Complete your payment run
Send remittance advice to suppliers
For more help with payments:
Find out how to create and manage payment runs in Dext
Understand how to refresh your accounting software data in Dext