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"
A client will have an incorrect negative balance in two very specific cases:
Credit Manually Applied To Account For Open Payment
- Client submitted payment in excess of the invoice’s balance.
- A credit was manually added to the client’s account to account for the open payment.
- The credit was applied as a payment to a separate invoice.
Credit Automatically Applied To Account For Open Payment
- Client submitted payment in excess of invoice’s balance.
- 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:
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.
To 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.
- Lets start by deleting the credit payment. Click the "Edit" button:
- Then delete the payment by clicking the “Delete Payment” button:
- This will delete the credit payment resulting in a credit balance of $10:
- 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.
- 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".
- 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:
- Click the “Add Payment” button:
- 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”:
- The next window will auto-populate the correct amount ($10) to apply to Invoice #478, click "Save Changes". Your client will now have