Remove the Over Credit of the Accounts Receivable account due to Unapplied Customer Payments

Unapplied Amounts in Customer Payments results in a negative balance in the Accounts Receivable Account as shown below:

1.     Invoice amount is for $100.00

2.     Payment is for $110.00.

3.     Accounts Receivable will be credited for $110.00 which is $10.00 more than the balance of the invoice.

To correct this, users can do the following:

1.     Apply the Unapplied Amount can be used to pay other invoices.

2.     Create a journal entry to apply to the Unapplied Amount:

·         Go to Transactions > Financials > Make Journal Entries.

·         Debit Accounts Receivable $10.00 and Credit the appropriate account (i.e. Other Income) for $10.00

·         Assign the Customer in the Name column field and save the transaction.

·         Navigate to Transactions > Customers > Accept Customer Payments.

·         Select the customer in the Customer field.

·         Under the Apply > Invoices subtab select the journal entry.

·         Under the Apply > Credits subtab select the Payment with the Unapplied Amount.

·         Hit Save.