Sometimes, you may partially pay an invoice so it will never be fully paid. Examples include:
a basic error where you paid a few cents less or more than the actual amount
you have made an instore purchase and it still flows through to your invoice
you have disputed the invoice and are paying less than the invoiced amount (and the supplier has not sent a credit note).
Consult your accountant about the best practice for recording partially paid invoices in your business. This is generic information.
To learn how to clear partially paid invoices please watch this video or read the information below.
Follow the steps below to clear partially paid invoices:
on the Invoice side of the Needs Action screen, click +Record. You will need to create a manual invoice for the remaining amount. If you have overpaid the invoice, it will be money out. If you have underpaid the invoice, it will be money in.
Enter the details of the invoice and code it. We recommend the invoice date, other party and coding be the same as the original invoice.
Ensure the description explains the reason for the reversal. Suggested wording includes Reversal: instore payment, Reveral: disputed amount, Reversal: overpaid.
Click Save.
Go the the Matching page.
Select both the partially paid invoice and the contra invoice that you created.
Click Link and Match. The invoices will then move to the Completed page.
