Mishandling payments against customer starting credit balances

As a workaround, instead of giving the customer a starting credit balance, create a Sales Invoice predating the Start Date for that Customer but with a negative value (minus sign in front) to equal the starting credit balance and using the word “Credit” as the invoice number. Then for the Spend Money, make sure you do the full allocation to Accounts Receivable + Customer + Invoice (Credit).

PS: You should delete the existing starting credit balance entry first.

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