Please see image below. I don’t know if I’m handling the accounting part correctly but I’m sure the balance is supposed to reduce. This client has never ending funds!
I received a payment of £400 in advance of supplying goods. I hadn’t issued an invoice but I created a credit note so the customer’s money was accounted for. The money had been paid by BACS into my bank account although the credit note balance didn’t appear in the transactions of the bank account.
I then forwarded the goods to the customers, and created an invoice which I used the customer’s credit to pay the outstanding balance with.
This was the result. Is it me doing something wrong (seems likely in this case) or is this a bug?
Am I looking at this the right way? Should the credit note amount have shown in my bank balance?