How to Resolve Negative Balances on AR Management Invoices

Problem

Negative balances on AR management invoices can occur when there is a payment with a larger amount on the invoice than the total amount. This creates a negative balance that needs to be resolved.

Solution

Option 1

If the negative balance is generated from a payment:

1. Unapply the payment from the invoice. This moves the payment to the customer profile as available credit.

2. Re-apply the payment from the customer profile screen:        

   1. Go to the customer profile.

   2. From the customer profile, click the More icon on the top right.

   3. From the dropdown, select Collect Payment.

   4. On the Collect and Apply Payments screen, select Credits.

   5. In the Credits section, select the payment.

   6. In the Apply to Invoice section, select the invoice.

   7. Click Save.

3. The payment fills the remaining balance and the rest of the payment stays on the customer profile as credit.

Option 2

If the negative balance is generated from negative tasks on the invoice:

1. Clear the invoice balance by creating an adjustment invoice and adding a positive task to bring the invoice balance to $0.

2. Create a payment through the customer profile with the amount needed as credit.

3. If the payment type is Credit Card, click the down arrow on the Charge option and select Save without Charging.

4. The amount stays on the customer profile as available credit.

Option 3

If the negative balance is caused by a task on an adjustment invoice:

1. Go to the adjustment invoice causing the issue.

2. Add and apply a payment with a negative payment amount to the adjustment invoice. This clears out the balance on the adjustment invoice.

3. Go to the invoice with an open balance and click Collect and apply payment.

4. Add a positive payment for the open balance amount you want to apply.

5. When finished, click Save.