I’m not sure what I’m doing wrong or there might be a glitch.
I do not allocate payments made by customers to specific invoices and my customers also pay deposits for work to be done without there being an invoice.
Example 1: On the customers statement the amount reflect correctly. But on the invoice the amount due is not correct. I’m going to use one customer as an example [ALEXIA01] – Alexia Rechen. This customer’s account is in credit (she overpaid).
But when I issue an invoice for less than the amount here account is in credit the invoice incorrectly reflects an amount due, when it should reflect “Paid in full” or reflect the credit on her account.
Example 2: The same thing is happening with this customer [PD8430] – Mr. Peter Davies. On his statement his account balance is zero R0.00. But on the invoice tab two invoices reflect incorrect balance due amounts.
In this case, any receipt from a customer is going to be allocated to an unpaid sales invoice, beginning with the one with the oldest due date. If that is satisfied, any remainder will go to the next oldest, etc. The same thing is going to happen with deposits posted to the customer’s subaccount of Accounts receivable. If there are several such transactions, you are quickly going to lose track of what is going on—as you have.
On Example 1, it is impossible to draw any conclusions because you have only shown a portion of the customer statement. No date range is shown. But I have high confidence any issues are related to your failure to assign receipts to specific invoices. You’ve left the program to assign receipts per its own rules and mixed those with deposits.
On Example 2, the zero balance on the statement appears correct. You’ve got one invoice overpaid and one underpaid by the same amount. Again, this is because you allowed the program to post receipt/deposits according to its rules instead of telling it what to do.
Read these Guides for more information:
I also notice you are misusing credit notes for bad debt write-offs. Read this Guide for correct procedures on such transactions:
Thank you for your very quick response. I’ll read the suggested guides.