Paying for invoice B with negative balance of invoice A

1

Hello,

I have the following scenario and wonder what the correct approach would be.

Invoice A is overpaid by $88. Therefore, balance due is -$88.

The customer wants to buy a new item for $74. Invoice B is thus created and has balance due of $74.

I should mention Invoice A is several months old, and the customer recently decided to apply his credit to a new purchase, so changing the original invoice isn’t optimal.

To go about this transaction, I went into Invoice B, clicked Receive Money / New Cash Transaction. I did not select a cash account, thus it auto selected Suspense.

Under items, I have:
Accounts Receivable, Invoice B, $74.
Accounts Receivable, Invoice A, -$74.

The outcome is that Invoice B is paid, and Invoice A has a remaining balance of -$14, which can be fixed by issuing a refund for the remaining balance.

However, when I look in my cash transactions tab, I see Invoice B has a transaction against the red colored suspense account for a balance of 0, as expected. However, I realize the Suspense account should never be used (even though this particular transaction doesn’t generate a balance for suspense and doesn’t show up on the summary).

In any case, is there a better way to manage credit between invoices without involving any type of balance accounts (cash or bank) since technically no balance is transferred?

2

Find the receipt for the overpaid invoice. Remove the invoice designation so Manager can auto-allocate. Read the Guides about auto-allocation.

3

Here are the guides Tut was referring to:

All Guides (bookmark this - or find it in the menu at top of the Manager site)

Avoid automatic credit allocations
Resolve issues with automatic credit allocations

1 Like
4

Thank you for the replies, they were helpful.

I can’t fully leverage the tools because I lump all customers for the storefront under a storefront customer in Manager (we also have b2b customers who have an account each, and treat the online shop as a separate customer of the business).

Although it is a hack, I changed the suspense account on my original transaction to an actual cash account. At least these invoice adjustments are recorded on their respective transaction histories, even if there is a 0 balance transaction under the cash account. It would have been confusing with special accounts or using customer credit as it would effectively have been a “store wide” credit applied instead of going by the individual invoices.

Thanks for the feedback!