Before you can allocate credit notes, your portal administrator must configure Credit Note Allocation Rules.

Navigate to the Credit Note Rules page.
Click the Create Credit Note Allocation Rule button, located to the right of the page title. This opens a modal where you can define the rule's settings

The following fields are available when creating or editing a rule:

Rule Name A unique, descriptive name for the rule.
Apply Rules to These Payers A required multi-select dropdown to choose one or more payers to whom the rule will apply.
Limit to Seller Relationships An optional multi-select dropdown to apply the rule to specific seller relationships. A company cannot be selected as both a payer and a seller in the same rule.
FX Rate Template A mandatory dropdown to select an active FX rate template. This is used to convert all instruments to a single currency to check if a credit note threshold is exceeded.
Allow Split Allocation A toggle (default ON) that, when enabled, allows a single credit note to be split and allocated across multiple instruments .
Require Same Maturity Date A toggle (default ON) that restricts split allocations to only those instruments that share the same maturity date as the credit note.
Allow Funding of Partially Netted Instruments A toggle (default ON) that determines if instruments partially offset by a credit note remain eligible for funding.
Credit Note Threshold A toggle and percentage input (0-100) to set the maximum ratio of total credit notes to total instruments for a given payer. If disabled, no threshold is applied .
Order of Allocation to Instruments A drag-and-drop list to define the priority for allocating credit notes. You can set primary and secondary sorting criteria based on Due Date or Due Amount, in either ascending or descending order.

The system enforces several validation checks before a rule can be saved:

Required Fields The Rule Name and Apply Rules to These Payers fields must be completed .
Unique Name The Rule Name must be unique across all existing rules (case-insensitive) .
Conflict Check The system prevents the creation of a rule if an identical combination of payers and seller relationships already exists in another rule. A payer can have one general rule (no seller specified) and multiple specific rules where the payer is paired with different sellers