Thanks for your response. Not being an accountant I like monies received to match to the exact invoice they relate to. If for some reason there is a credit with one of my customers I don’t want it to automatically get attached to an invoice for which they have not yet paid. I just find it difficult to follow. I would rather the positive balance just remain as such.
Ciao
Neil
why would you not want the credit to be allocated automatically?
If the customer has overpaid you for an invoice, the excess amount will have to be adjusted to their next invoice anyway. the customer would themselves ask you to adjust their excess payment. so i cannot understand where the problem is.
If you do not want the excess credit to not get credited automatically, then I would recommend you create a new liability account under Chart of accounts, say “Excess payments”.
Then when you receive payment in your Cash Accounts, enter the exact invoice value against your Accounts receivable. Add a new line and enter the excess amount under the newly created liability account “Excess payments”.
This way you will have record of what actually is received and also the same will not automatically get credited in the next invoice.
@ProDev, the solution to your problem has already been provided in the link above. Have you read it? Have you tried it?