I have been off work for a few weeks and when I open up Manager, the layout is different and invoices that were paid in full have amounts pending? What happened?
Here’s the list of recent changes:
The one you’re looking for is this one:
Regardless of the changes to the program, an invoice that was previously paid in full should still be paid in full. @MarkMcA, can you post some screen shots to show specific examples? I suspect some other issue besides program changes.
Hi, I’ve attached a screen shot. Here is an example of what Im talking about. As you are see, one invoice is currently indicating ‘overpaid’. I would be 99.99% certain that a few weeks back, the invoice would not have had payments allocated to it and the payments were allocated to the oldest invoice.
I could show a couple of other examples?
Hi, What appears to be happening is that when a payment is allocated to an invoice that clears the balance, the remainder of the payment is not automatically allocated to the next oldest invoice as it use to do.
that is what the recent changes elaborated by @lubos in the topic pointed by @ShaneAU clearly says.
the excess payment will not be automatically allocated from version 17.9.28, it has to be manually allocated to other invoices.
but if you do not select any invoice when making a receipt, the excess payment will get allocated to other unpaid invoices automatically as earlier.
So basically you are saying that if a payment greater than the amount due on an invoice is received (for example, €150.00 is received and the oldest invoice balance due is €50.00, then, firstly, I must check to see what the balance is on the oldest invoice, if the balance due is less than than the amount received, I must calculator the difference and then split the payment - €50.00 to the oldest and €100.00 the next oldest and if the balance due on the next oldest is only €50.00 also, I must split it again?
the easiest approach will be to not select an invoice when receiving the money.
if you do select an invoice, the invoice will be listed as Overpaid. in this case just click the Balance due blue figure which will be in negative ofcourse, the transactions related i.e the invoice and the bank transaction will be listed. now the excess amount is shown at the bottom of Amount column. just edit the bank transaction, edit the amount accordingly, with the excess amount as a separate row for another invoice and update.
Can you not see how cumbersome and slow that’s going to be?? Can you tell me who is going to correct all payments and invoices for my customers across four businesses and put together a process flow for new processes that are now required??
@MarkMcA, I think you misunderstanding the change. The only thing that is new is that if you specify that an excess amount is for a particular invoice, that invoice will be overpaid, but no other invoice will be affected. Previously, if you overpaid one invoice, the excess amount went to other paid invoices in ways that were possibly unpredicted. (While some Guides and many forum discussions said they went to oldest invoices first, they actually went to those with oldest due dates first–a subtle but sometimes important difference.)
Now, if you do not specify an invoice, receipts are applied to the unpaid invoice with the oldest due date, then next oldest, etc. This behavior is exactly as before. Only if you specify an invoice can you get the Overpaid status. This confines the problem to the overpaid invoice, rather than propagating it through a rolling string of invoices, which the customer may not have intended to pay. So you only have to “fix” one invoice by editing it. You can apply the balance due to that invoice and add another line to apply the excess to Accounts receivable for that customer, leaving the invoice blank. The excess will then be applied using the oldest due date concept. Or, if there are no other open invoices, it will remain as a credit for that customer.
@Tut With respect, I think you are misunderstanding the inconvenience and work this is going to take. I have to sanity check all outstanding invoices now and reallocate payments that were previously allocated and reconciled to bank statements. I now have outstanding invoices with different balances that weren’t outstanding a few weeks back.
Take this customer for example: How do you suggest I reallocate payments that ensures the oldest invoice is paid (15SL032) then balances are allocated to the next oldest: (16SL032)
@MarkMcA, what you show is the drill-down report on a customer’s
Accounts receivable balance from the Customers tab. It does not, and is not meant to, show the status of individual invoices. Instead, it shows the running balance as new sales invoices and receipts are posted to that customer’s account.
If you want to see the status of invoices, click on the Sales Invoices tab.
@Tut Yes, I think that might be something that changed recently because I never had to go near it. The process I use to follow was quite straightforward.
Go to Customer tab > Sort/Search by customer name > Response would indicate oldest invoices and their balances (This is based on invoice number) > Click relevant invoice > Allocate payment.
Did anything change today? I did a screen shot of invoices / statuses for a particular customer earlier (see exp2) and when I checked it this evening, the invoices / statuses had changed? (see exp3)
I believe you are remembering incorrectly. Invoice status has always been under the Sales Invoices tab and running balance has been under Customers for several years, if not always.
The workflow you describe suggests you may have had a really old version under which the Customers tab was not organized as it is now. I confess I don’t remember the old details because it was so long ago.
Not that I am aware of. Without seeing the entry screens for all receipts from this customer, it looks to me like the only difference between the two screen shots is that in exp2, an excess receipt has been specifically allocated to Invoice 16S032, and in exp3 it has not. Did you edit something between those two screen shots? I suspect so.
Not necessary. You see, most businesses don’t care about invoice matching. That seems to be your case if amounts are to be applied automatically on FIFO basis.
So if customer pays you €150.00, simply allocate €150.00 to them without selecting their invoice. Manager will automatically apply €150.00 to unpaid invoices on FIFO basis.
As a guideline, you should select invoice only if customer is explicitly telling you the amount paid is for such and such invoice (usually by sending you remittance advice). If they don’t tell you, don’t tell Manager the amount is for some particular invoice. Let Manager work it out automatically.
If customer is not happy how the amount paid has been applied across invoices automatically, they can tell you how they want it applied and this is what you will record in Manager.
Absolutely under no circumstances you should worry about how to split customer payment among individual invoices if customer doesn’t tell you how.