See below screenshot customer transactions and unpaid invoices
Transsactions
Unpaid Invoices
I received payment on 29/08/2016. But Still old invoice showing over due. Amount is not allocated correctly.
This is what your trying to tell right @Gordon_Strutt1
@sunilmanjunath - There seem to be a situation around the INV 7148 for 630.00.
After the 29/8 payment, that Invoice (7148) should be unpaid, but instead it is paid and that invoice figure (630) is represented by the 130 + 500 balances due. Then the 6/10 payment (4337) which should have paid that 630 Invoice but instead it has been deducted from Invoice 7156 hence the difference between the values next to the 42 days.
You could delete those last two payments and then re-enter them in date order to see if that fixes the automatic allocation or do a re-enter with manual allocation (per invoice) so the payments go against the correct invoices.
@sunilmanjunath, I’ve moved your post to a new topic, because it had nothing to do with the topic where you posted it. The other person’s question was totally unrelated.
Your issue is definitely explained by timing of invoices versus receipts. You have issued additional invoices before you entered payments of prior invoices made by the customer. You don’t say how you allocated those payments. But, like @brucanna, I conclude you did it without specifying which invoices the receipts covered. Break your receipts into multiple line items for the invoices covered and all should be well. Overall, your Accounts receivable balance for this customer is correct.
