What is the best action to take with an invoice after it is paid for, partly or fully?

What is the best action to take with an invoice after it is paid for, partly or fully?

I’m not sure exactly what you mean. To enter your customer’s payment of the invoice, see the portion of this Guide having to do with receipts against sales invoices: https://www.manager.io/guides/how-to/receiving-money.

If you mean what do you do with a sales invoice after it is paid, the answer is nothing. Just leave it in your accounting history.

I meant the first option actually. Let me check the link…

Just checked out the guide now. I have a quick question.

I usually bill this particular client I have received money from in USD. He pays in USD. I stay in Nigeria.

When I go through the steps for Receiving money from an Invoice and choose a Cash account, it somehow changes the amount to be received to the same amount in Nigerian Naira, then there is a box beside it with “Optional” written in it, and USD showing as the currency there.

How do I ensure that the dollar amount is correctly received, with the sum when converted to Nigerian Naira set to the conversion rate I choose?

(Screenshot attached)

Thanks.

In the Receive Money - Unit Price, enter the exact Nigerian amount received and in the optional US$ box entered the US$ amount of the invoice, this will then fully pay the invoice. Conversion rate is not applicable as you are dealing with actual currency amounts

Multi-currency behavior depends on things you have not revealed explicitly:

  • What currency is specified for the customer?
  • What currency is specified for the cash account?

Your screen shot looks like the John Great (GTBank) is denominated in Naira, but the customer was set up for US dollars. Such a bank account can only receive money in Naira. So if the customer pays in dollars and the bank does the conversion for you, you should enter the receipt in Naira at the bank’s converted amount, regardless of what rate you might otherwise use. There may also be a fee to enter in another transaction, payable to the bank.

The purpose of the secondary box is to let you enter an equivalent amount in USD, irrespective of the exchange rate you might have entered elsewhere.

Sounds simple enough…

The John Great cash account is set up for Naira, and the customer is set up to pay in dollars.

I just noticed something now. Under “Account”, the default account is Accounts Receivable. I decided to put the payment under Sales (Sales is under Income), instead of under Assets in Accounts Receivable.

When I did this, the option for the USD vanished. Why is this please?

Thanks @Tut

Because the USD is a setup with the customer, once you change away from accounts receivable you are also shifting away from any customer association as you are making it a cash sale.

By doing this you are duplicating the sale, once with the sales invoice and once with the cash sale, besides that, by doing that the Sales Invoice wont ever get paid.

In other words, I need to leave it under Accounts Receivable?

Yes

Okay. Thanks