Hi, when I create a Sales Invoice with a due date in the future, every time I get a part of the payment, the Manager accuses this receipt as “Automatic payment using available credit”. The option “Automatic Credit Allocations” is already disabled. I would like to know what can be done to this does not happen. Thank you.
Do you mean the due date is in the future, or have you set the issue date in the future? Manager will treat an invoice with an issue date in the future as though it has not yet been created, but still remembers the information. The due date, on the other hand, is only used to determine whether the invoice is overdue.
Where do you find this option? I am not familiar with it and cannot locate it. I thought
Customer credits was a control account that could not be tampered with.
Automatic Credit Allocations option is only available to those who have been using Manager before this feature was implemented.
Not sure how this can be possible. When you allocate payment from customer against specific sales invoice, the amount will be credited to this invoice. There must be something more going on. If you like, you can send your accounting file to
Hello. I have encountered this same issue. I don’t understand it. I entered some items as Purchase Invoices instead of Expense Claims and then realized I had made an error so I corrected it. And I was looking over my Purchase Invoice tab to make sure all went well and thats when I noticed they still said paid. So I hunted around to see where they paid from and I found them in my Owner Equity account. And none of them can be edited to delete the payment. Only 4 of them say: Automatic payment using available credit. The rest reference the description I entered. What do I do to correct this?
You must be using an older version because in newer version
View button is enabled on automatic payments using available credit.
View button helps you to analyze where the credit is coming from.
I have version 16.2.77.
Whats weird is all of these are regular real purchase invoices that were ever only paid out of the business bank account. They used to look like a regular checking withdrawal payment but now they look like the image I sent.
And I have one purchase invoice that should have been an expense claim that I can’t delete even though its showing over due. I created an expense claim correctly for it and its now residing in my owner draw account. When I initially made these categorizing errors I didn’t realize there was a Funds Contributed within the Owner Draw account. So I created a Member Contribution bank account and thats where some of the incorrect purchase invoices were originally paid from. I was then going to clear that out against my Owner Equity account. And I can’t delete the Member Contribution bank account because it tells me:This record cannot be deleted because it is already referenced by another object.
I’ve been able to correct every single purchase invoice, now an expense claim, one except the one referenced above. It keeps telling me: This record cannot be deleted because it is already referenced by another object.
So my assumption is that these two are still tied together due to my error but I can’t figure out how to fix it. Thank you so much for your time!
There is no such thing unless you have renamed things in an unconventional way. A funds contributed account would normally be a permanent equity account. I suppose you could also use it as an annual account that was closed to Owner’s Equity at year end. That would be similar to an owner’s drawing account, which is conventionally an annual equity account, also closed to owner’s equity at year end. But if you’ve renamed
Retained earnings as
Owner's equity, following my earlier explanation, you really don’t need either. But regardless, a contributed funds account would never be a subaccount of or “within” an owners drawing account.
This notice appears when another transaction is involved with the record. For example, you can’t delete a sales invoice if there is a receipt of money allocated to it. You’ll need to track back through the interrelated records to see what still needs to be recategorized.
I didn’t add these accounts. They show up in my settings/capital sub accounts link and have always been there. I don’t use share of profit, and would not ever.
Here’s where they show up to use:
So I utilized that to enter personal funds I contributed to the checking account. It works perfectly and makes sense.
I still need to learn how to correct the ‘Automatic payment using available credit issue.’ And why when all are paid out of the business checking they show up like this in the Owner Equity account.
Your image shows the accounts are subaccounts of capital, which you have apparently renamed Owner’s Draw. That is a misleading name, because only one subaccount is a drawing account. If you don’t plan to use an account, delete it.
Your other image seems to show that you categorized payment of a fee as a receipt. That would be incorrect. And a payment cannot have come from a capital account, no matter what it is called. A payment can only have been made from a bank or cash account. This looks like the origin of at least some of the problems you are experiencing.
The FEE reference is just my labeling for various categories if you will of certain items as I enter them - like a checkbook notation. This referred to a deposit I made into the biz checking for bank fee coverage so it really was a receipt into the bank with a FEE reference so I know what it was for as a snap shot. Since I effectively loaned the biz that money I think its entered correctly.
I see what you mean about the capital account(s). I’ve corrected all of them and yes they appear correctly now. Fixing all of this did nothing though for the original issue I had: Automatic payment using available credit issue.
These 4 transactions were always entered as purchase invoices and have always been paid out of the biz checking account. And I’m completely reconciled for each month. The only thing I can try to do at this point is delete the payments against them and then delete the original purchase invoices if it will let me. Any other suggestions?
Glad you seem to have the capital issues sorted out. Let’s see if we can solve the automatic credits problem (if it even is one). You must realize, of course, how difficult it is to troubleshoot someone else’s accounts when you can’t see them.
Basics first, and please forgive me if I tell you things you already know. A purchase invoice should normally be created when a supplier invoices you and you will pay in the future. A purchase invoice creates an account payable, which is a liability. When you pay for something upon delivery (or before), there is no need for a purchase invoice because the expenditure is a direct expense, not a liability that must be accounted for in
Accounts payable. The only reason to use a purchase invoice when paying immediately is to create a continuous record of what you have purchased from a specific supplier. Don’t get me wrong; that can be a valuable thing to do. But you must immediately enter another transaction to show the payoff of the account payable.
Accounts payable is a control account in Manager, it has subaccounts for individual suppliers, so the supplier must first be set up in the
Suppliers tab before a purchase invoice can be created in their name. Otherwise, Manager doesn’t know where to allocate the transaction and it will end up in
Once the suppliers subaccount has been established, all transactions affecting that supplier will be recorded in it. Purchase invoices will go as liabilities (credits). Payments to the supplier will go as debits. And if, for some reason, the supplier owes you money (such as for goods you returned or an overpayment by you of one of their invoices), you may have what are called
Supplier credits. The terminology can be confusing, because a supplier credit is actually a debit on your books; it reduces your liability. The reason it is called a supplier credit is that the supplier has credited your account. (All their transactions that affect you are reversed so far as debits and credits are concerned.)
So, if you create a purchase invoice for a supplier who owes you money, that money will automatically be applied to the purchase invoice. Say, for example, you are owed $100 for returning an end table. Now you order a $300 chair and the supplier gives you a sales invoice. You will enter that into your books as a purchase invoice. Because the supplier owed you $100, a statement from the supplier would show you owe $200. (Remember, an invoice covers only a given transaction, while a statement covers a period of time or your account to date.) In actuality, the supplier may collapse all these transactions into one and apply your credit directly to your invoice. Regardless, when you enter the $300 purchase invoice into Manager, the program already knows about the $100 supplier credit, so it automatically applies it and creates an account payable for only $200.
That automatic allocation is what you are seeing. And Manager won’t let you delete it because it’s tied to something else. The question is what, and the answer is you most likely entered something into that supplier’s account telling Manager that the supplier owes you money. If the supplier doesn’t actually owe you money and never did, finding and correcting that transaction should allow you delete the entry.
Now, evidently in your mind, all this is tied up with an expense claim. Keep in mind that expense claims have no direct connection to purchase invoices. I already discussed how a purchase invoice records an obligation to pay. That obligation could be satisfied in many different ways. The expense claim simply records someone (in this case, you) paying a legitimate company expenses with private funds. You can pay off the account payable associated with a particular purchase invoice with personal funds and file a corresponding expense claim. But it’s difficult to envision a situation where an expense claim should be involved with a supplier credit. After all, the supplier credit (from which the automatic allocation was made) records the supplier owing money to you, not you paying money to a supplier.
To track down the source of your difficulty, I suggest running Supplier Statements for all your established suppliers who have misbehaving credits, such as InStockLabels. Look and see which transaction overpaid an invoice or somehow allocated funds directly to
Supplier credits. These should stick out like sore thumbs. If, for example, you orders labels over the internet and paid at the time with a credit card, that should have been handled as spending money, and the transaction should have gone directly to an expense account. If you also entered a purchase invoice, you have accounted twice for the labels. And if you entered a payment against the purchase invoice, you overpaid the account and created supplier credits. Note that this is true even if you didn’t actually pay twice. If you entered it twice, Manager remembers, and it might not look wrong in your bank accounts because you didn’t enter a payment.
Trust me. While Manager has some bugs like any software program, this is not one of them, or hundreds of people would be complaining. Somewhere, you have an entry mistake. With its passion for not forgetting anything important, Manager won’t let you solve problems with an accounting meat cleaver. It will make you unravel all the connections to that error. The good news is that when you find it, all necessary corrections should have already been made.
Back tracked and made sure everything/one was set up correctly. Really like that Supplier report. It not only showed me my questionable transactions but a few more buggers I wasn’t even aware of.
I discovered that from the Bank Account tabs, you have 2 completely different ways to look at those account. One with VIEW and then one with the statement balance link. When I looked at these I not only found the Purchase Invoice it wouldn’t let me delete referenced here but a handful of other suspect items that didn’t show up anywhere else! I was able to delete them all and now all accounts are spot on!
I corrected the other part of the original issue (Automatic payment using available credit issue) by deleting the new payments and then purchase invoices for these items and it cleared them out of everything. Then I started from scratch and re-entered them flawlessly.
Yes, Manager is very smart. Much smarter than its human users. I’ve realized there are quite a few ways it lets you know something is just not quite right. They are: Automatic payment using available credit issue, Suspense, and the Supplier Statements report run with transactions selected and the entire date range entered.
It took the better part of an hour to delete, re-enter, delete errors, and run reports to get to the location of these items but it was a great learning experience. Thank you so much for your patience!! Until next time…
I’m glad it all worked out.
Is it possible to disable Automatic payments based on available credit. This has caused me a few problems and not being an account I cannot work out how to correct the issue.
What issues do you have ?
An automatic payment was posted to an invoice. I subsequently posted the payment when it was received, resulting in a duplication. I don’t know how to correct it.
I’m not an accounts person - so if auto payments can’t be turned off, I’ll have to live with it.
If you have a payment received against a customer before making an invoice to them, the amount will be available as a credit to the customer and will be automatically applied the next time you make an invoice to that customer.
If the customer does not have a credit and you had made an incorrect entry, delete that particular entry by navigating to the Customers module and clicking the value or - shown under the Accounts receivable column. This will show you the transactions related to that customer and there you can edit and delete the incorrect entry.
If the customer has a deposit amount which should not be automatically allocated as a payment against invoices, then you should follow the guide below.
What problem are you trying to solve by doing this? All you will end up is another problem where customer will owe you money and you will owe money to customer at the same time.
Automatic credit allocation does save time and keeps accounts receivable tight. I do recognize the problem with visibility where you want to troubleshoot how money flows among invoices. This is something that is currently being worked on.
For this to occur, a previous payment must have already been posted to the Customer.
Go to the Customers tab, click on the blue balance figure and review the transactions, or
Go to Reports - Customer Statements and select “transactions” and review the Statement.