Previously if payment was to be allocated against the invoice, user would select
Accounts receivable account, then select invoice.
If payment was to be allocated against customer, then user would select
Customer credits account, then customer would have to be selected.
Although from accounting point of view, this approach was working. It was not intuitive.
The latest version is changing this. It is no longer possible to select
Customer credits account because drop-down to select a customer is now under
Accounts receivable account is selected, you will be able to select customer.
When customer is selected, you can optionally select an invoice. If you don’t select any invoice, Manager will automatically allocate payment against the oldest unpaid invoice. If there is no unpaid invoice, the customer account will be in credit. The credit will be automatically applied to the next issued invoice.
The bottom line is, when payment is received from customer, always select
Accounts receivable account. If payment is made to supplier, always select
Accounts payable account.