Balance due - customer has credit, how to apply this to invoice?

I have a customer that overpaid a prior invoice due to a miscalculation on my part. It’s only $9.68, however I am having trouble applying this credit to his next invoice in a way that will balance the books.

I corrected the previous invoice after I realised the miscalculation, which marked it as overpaid:


The next invoice does not automatically take into account the credit, so the invoice total and the balance due are identical:


That is, unless I apply a credit note to the invoice:


But then that applies a further $9.68 discount to accounts receivable:


What should I be doing here to show my customer on the invoice that the total is $560 but balance due is only $550.32 due to the previous overpayment?

Invoices and payments of those invoices are two separate things.

I assume that after your correction, you have sent the customer the correct invoice. At that time, you could also have indicated, for instance in an e-mail, that the customer could deduct the overpayment in the next payment.

If necessary, you can now put on your next invoice, in the footer, for instance, or another text box, that the customer overpaid on the previous invoice and can deduct the overpayment on this invoice.

Or you could send him an e-mail with an explanation.

Thanks Ries. Communicating with my customer is not an issue, it is how to balance the books in Manager that I have an issue with. The invoice amount is for $560:


If he pays $550.32 and I receipt that against the invoice, it will probably show the invoice as underpaid.

Although I guess at the end of the day that’s not really the end of the world as long as the accounts receivable is $0.

But my question still stands: what function in Manager will allow me to take into account my customer’s credit and show Balance Due: $550.32 without affecting accounts receivable?

Well I found a solution, although I don’t know if it’s best practise in accounting world!

I applied a “reverse” credit note of negative -$9.68 to the overpaid invoice, then applied another credit note for $9.68 to the current invoice. This seems to have the desired effect.

Current invoice:


Overpaid invoice:




Do this when receipting against the overpaid invoice.

Thanks mate, I’ll give that a go. :slightly_smiling_face:

I do that also and fill in the empty invoice No. when I issue another one - it’s more manual work but it solves the problem