Incorect credit applied by debtor
A client over paid an invoice so was provided with a credit note. The client applied the full invoice amount to their payment instead of the credit note amount. Appreciate assistance in how I...
Forum Discussion
Thank you for your assistance Yanike, however maybe I didn't explain the situation correctly.
The invoice was over paid several weeks ago, leaving the client with a credit. When the client applied the credit to their next payment, instead of applying the credit amount, they applied the full amount of the invoice eg:
Invoice $1,000.00
Paid $1,500.00
Credit $ 500.00
Credit applied to next payment $1,000.00
Owed by client $ 500.00
Hi Security360
Thanks for the clarification. How did the client apply this credit? It appears that they underpaid you. Once they pay the remaining $500 you can record that payment against the invoice.
Thanks Yanike
Credit was applied to a payment that consisted of several invoices.
The trouble is trying to clear the overpayment in the last financial year and repayment (when it comes) in this financial year.
Thank you for your assistance
Hi Security360
It is still unclear to me how your client applied the credit/payments to the invoices. I would recommend you replicate exactly in the software what has occurred in real life by recording the payments and credits in your software as they occured. The help articles I gave you previously can shine some light on that, as well as this one: Receiving payments.
If you are unsure what the effects are when this crosses financial years I would recommend talking to your accounting advisor.
