I tried to find an answer looking through the forum but was not successful. I have a customer to carry out some work on his behalf. Received money on account from him. Pending his work received further instructions from the Customer’s wife to carry out different work. Customer and his wife agreed to settle the wife’s invoice from the Customer’s on account payments as there were sufficient funds. Once work is completed prepared two different invoices to settle. The Customer and his wife have different accounts with different reference numbers. I can settle the Customer’s invoice from the money received on account but I am unable to settle his wife’s invoice from the Customer’s account. The only option I have now is to refund the Customer the balance in his account and ask his wife to pay for her invoice separately. If there is any other way, I will appreciate your help in this matter.
You have options. In presenting some of them, I will assume that you want to keep the customer and his wife as separate accounts for some reason. Exactly which approach you decide to take may depend on how you recorded the initial receipt, which was an advance.
The easiest way to handle that advance, would have been to assign it to Accounts receivable and the customer’s name. See this Guide: Record customer deposits and advances | Manager. If you didn’t do it this, you can still edit the receipt to assign it there.
So one way to handle the switch between whose account you are charging is to reallocate the original deposit to the wife instead of the customer. Manager does not care where the money actually came from. Once it is in the bank, it belongs to whoever you say it belongs to. Just edit the second field in the Account group of the receipt form. Then issue a sales invoice to the wife and the funds will automatically be applied. Since the sales invoice is less than the deposit, the wife will still have some credit.
You could also transfer the credit from customer to wife with a journal entry. Debit Accounts receivable => Wife and credit Accounts receivable => Customer. At that point, the customer would have no credit and when you issue him a sales invoice, the full amount would be due. The deposit would show as a credit in the wife’s Accounts receivable balance. As with the first option, the credit would be automatically applied to the next invoice written on the account.
There is no reason to refund any money to the customer unless the customer requests a refund and does not owe you for another sales invoice. (Your post says you already prepared two different invoices, which implies the customer does owe you money.)
Reading your title again makes me wonder whether I misinterpreted what you meant. Your title speaks of allocating money to different sales invoices from one customer account. That is done all the time. But everything else was about taking money from one customer’s account and using it for another.
What are you really trying to do?
If you are receiving one amount of money for paying two different customers then just add a line
Or if the amount of money is from one customer but paying two invoices then just select the same customer.