When you enter a new sales or purchase invoice, you might find that Manager automatically credits the invoice with some amount, making the
Balance due less than the invoice
This automatic credit allocation happens when the customer or supplier has a pre-existing credit balance. In other words, you owe a customer money or a supplier owes you money. Normally this is the desired outcome. You want any credits to be automatically applied to invoices, so you are not trying to collect from a customer more than is really owed to you and you don’t pay suppliers more than you really owe them. For example, if a customer has a credit balance of $100 due to a credit note, Manager will remember this until the next invoice is issued to that customer and will automatically apply the $100 credit to it without your having to keep track of it.
But if you are certain the customer or supplier didn’t have a credit balance, such an automatic credit allocation indicates something has been recorded incorrectly. The example below illustrates how to resolve the issue.
Some bookkeeping errors can be discovered immediately, some can take weeks or even months to discover. Used properly, Manager’s double-entry accounting system ensures all errors will be eventually discovered.
In the example above, even if you didn’t notice the bookkeeping error, eventually the customer who actually paid $2,345.30 on 26/04/2017 would complain that its customer statements did not reflect the payment. Or your Aged Receivables report would show that customer’s account becoming more and more overdue. Sooner or later, you would discover the payment having been attributed to the wrong customer.