Underpayment of Invoice
AVDL
Member Posts: 2
We invoiced our customer $1000.00. Due to the Covid19 situation they only paid $600 saying they will pay the rest later.
I did look up the community discussion regarding underpayment, but did not quite understand the whole write off scenario.
How do I connect the $600 bank transaction to the open invoice but at the same time, make sure that the entire accounting is not messed up and I still show the $400 as accounts receivable?
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Comments
Hey @AVDL! Thanks for reaching out here. I'm thinking that your best bet here would be to just categorize that payment towards that invoice as normal! That's not going to change your invoice's status to 'Paid', as the funds allocated to the invoice aren't enough to cover the total amount owing. Your Accounts Receivable balance will correctly reflect that amount overdue on the invoice.
Ah....Interesting. So, when the customer pays the rest and when I have that bank entry in Wave, will it let me pick the same invoice to apply against? I am guessing yes based on your response, but still wanted to ask this to clarify my train of thought!
Hi @AVDL! You are correct! Once the customer pays the remaining funds you will be able to categorize that to the same invoice. Doing this will change the invoice status from 'Partial' to 'Paid'.