How to remove automatic invoice allocation

[Emeka]

I used journal entry to post opening customer balance since using starting balance can only be done as per individual invoice. How do I allocation receipt to journal

[Joe91]

You can’t

[Emeka]

What options do I have?

[Joe91]

If you want receipts to be allocated to outstanding invoices, then the simplest way is to enter the opening balances as the unpaid invoices

[admiretawanda]

How about if I am moving from a new system, I want to migrate and have opening balances.

[Joe91]

Let’s say your start date is the 1st October for the new system

You enter the balances for most accounts as of 30th September

For accounts receivable and accounts payable, you enter the sales and purchase invoices with outstanding balances as sales and purchase invoices dated the day the invoices were created

They will then total to the opening balances and be available to post receipts and payments against

[Emeka]

What if I don’t have the individual outstanding sales/purchase invoices. Most of my Clients don’t do proper filling of unpaid invoices but can produce the accumulated figure on the Customer’s or Suppliers manual ledger. In this case, journal entry is the only option to enter them into the system as starting balance, hence the challenge of receipt against invoice or account balance.

[alasdair]

@Emeka

alance, hence the challenge of receipt against invoice or account balance.

For conversion - Create one ‘invoice’ for each client with their balance b/Fwd. Give the invoice a custom title such as ‘opening balance’ or ‘coverted balance’ or ‘Balance B/Fwd’.

Going forward - If you really don’t want monies applied to specific invoices, create a zero credit memo with a custom title of ‘Unapplied Cash’ or ‘On-Account payments’ or similar and temporarily apply receipts to that until you receive specific application instruction/remittance advice from your customer.

[eko]

If the individual unpaid invoices no longer exist and the only reliable information is the accumulated balance for each customer or supplier, I would not try to recreate historical invoice tracking. Instead the correct and legal way is to do the following:

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Enable Special Accounts:

1. Click on Customize (bottom-left of your screen)
2. Click Enable Special Accounts
   
   
3. Click Update

A special Accounts Tab will appear

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Create Control Accounts

1. Click on Settings
   
   
2. Click on Control Accounts (if never used will be in the greyed out area below the active ones)
3. Click on Special Accounts (in the Control Accounts Window)
4. Click on New Control Account for each the Customer and Supplier Balances and complete accordingly like this one (Customer balance is an Asset and for Supplier you need to use Liability)
   
   

The resulting overview of the Control Accounts for Special Accounts should look like (make sure group is correct!):

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Creating Special Accounts for Each Customer and Supplier (use their names as in your Customer and Suppliers list and add something to that name like "legacy balance"

1. Click on the Special Accounts Tab
2. Click on New Special Account and complete as follows, assign either the Customer or Supplier Control account to it:
   
   

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Create Starting Balances for Special Accounts

1. Click on Settings
2. Click on Starting Balances
3. Click on Special Accounts
4. Click on New Starting Balance and complete for each Customer and Supplier a separate entry like:

You will then eventually have a list of all the Starting Balances of Each Special Account.

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Apply Receipts (Customer legacy balances) and Payments (Supplier Balances)

Do as in the example below for each receipt and payment by the respective special account holders.

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That is all.