Adjusting Negative Balances For Clients Resulting From Open Payments

If you have a client with an incorrect negative balance, this article will walk you through the steps necessary to correct the negative balance and bring your client’s account up to par.

Note: Open payments are also sometimes referred to as "overpayments"

Introduction

A client will have an incorrect negative balance in two very specific cases:

Credit Manually Applied To Account For Open Payment

  1. Client submitted payment in excess of the invoice’s balance.
  2. A credit was manually added to the client’s account to account for the open payment.
  3. The credit was applied as a payment to a separate invoice.

Credit Automatically Applied To Account For Open Payment

  1. Client submitted payment in excess of invoice’s balance.
  2. A credit was automatically added to the client’s account to account for the open payment by using this form that existed in Time To Pet before we upgraded our payment system:

    Image of old Apply Credit pop up window that was used to apply credit to a separate invoice if the client had overpaid

    The credit was applied as a payment to a separate invoice.

Please Read: If the second case applies to you, we can more than likely automatically fix your client’s balances for you. Please get in touch with us and we will take a look for you.


Adjusting Credit Balance

Caution: Please ensure you have read the introduction and that this article applies to your client’s situation.

In the following scenario we have:

Invoice #477 has a total balance of $20 but a payment of $30 was made on February 14th.

Invoice #478 has a total balance of $10 and a payment of $10 was made from the client’s credit balance on February 15th.

Image of client balance sheet showing a negative balance of $10To fix this, we will remove the credit payment on February 15th, and apply the remaining $10 from the payment on February 14th towards Invoice #478.

  1. Lets start by deleting the credit payment. Click the "Edit" button:

    Image of client balance sheet with an arrow pointing to the credit added on February 15th

  2. Then delete the payment by clicking the “Delete Payment” button:

    Pop up window showing credit history with an arrow pointing to the delete payment button

  3. This will delete the credit payment resulting in a credit balance of $10:

    Client balance sheet showing a new credit balance of $10 and a $0 total balance

  4. We need to adjust the client's credit balance to $0. Close out of the balance sheet and navigate to the "Services/Invoices" tab of the client's account. Click the edit icon next to the credit balance.

    Image of client profile under the services and invoices tab with an arrow pointing to the green credit balance button

  5. In the new screen that opens up, click the blue "Adjust Credit Balance" button on the top right. Enter "-10.00" for the adjustment, make a note about the reason for the credit balance adjustment, and click "Save Adjustment".

    screen to adjust the credit balance and add a note about adjustment

  6. The client now has a $0 credit balance. Lets now apply the remaining $10 from payment on February 14th toward Invoice #478. Click "Edit" for Invoice 000478: 

    client profile under the services and invoices tab with an arrow pointing to the edit button on invoice 478

  7. Click the “Add Payment” button: 

    client invoice with an arrow pointing to the add payment button at the bottom of the screen

  8. You will see a notification that there are open payments that can be applied to this invoice, click “Click here to open a new window and apply these open payments”: 

    add payment pop up window with option to add open payment to client's invoice

  9. The next window will auto-populate the correct amount ($10) to apply to Invoice #478, click "Save Changes". Your client will now have 

    Apply Payments To Invoice pop up window to add or adjust the $10 open payment and save changes

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