Apply Under Payment to the GL
Introduction
When customers pay you for goods or services received, they do not always pay for invoices in full, for various reasons. Sometimes they will pay in installments, or over time. Sometimes a client will send a payment that is linked to multiple transactions. They might have paid less than the total amount of those transactions. This is often because the customer is claiming a debit that has not yet been credited to their account.
In Paragon, In order to issue the payment correctly, the “unapplied amount” on the payment has to be 0. Therefore, the missing (or short) amount has to be entered in the “on account” field. This will result in a negative on-account value (like a chargeback).
Adding a manual credit
A credit note for the unpaid amount (or chargeback) has to first exist on the customer’s account in order to apply it to the on-account negative amount.
Navigate to the credit module from the right-hand side menu bar.
Click on the create new credit button in the top left corner.
A modal will open up. From there, select the manual tab.
Select the customer you want and then click on the add items button on the bottom left.
A modal will open. Click on non trade items. If you don't see any items to choose from, make sure you are able to add non-trade items to transactions.
Select the item(s) you want to add and then click on the accept button on the bottom right corner of the modal.
Enter the amount(s) in the price line attribute, leaving the quantity at 1.
The taxes for the account will be calculated automatically. You can also use the notes section on the bottom left to enter a relevant payment or reference number. Then click on the save button.
Click on the issue action button to create the journal entry for that credit note.
A notification will appear telling you that a journal entry has been created.
To view that new journal, navigate to the journal entry module and select the journal entry number that appeared in the notification. You can confirm that the appropriate GL accounts were affected.
Adding Receive Payment
Navigate to the receive payment module.
Click on the create new button from the top left corner.
A modal will open. Select the manual tab.
Select a customer and then click on the add new lines button.
A new modal will open. Click on the credit tab and select the one you created earlier, then click the accept button.
Enter the credit amount in the Payment Amount column. In this case, $-115.50 has been entered.
Change the on account value in the bottom right corner to zero and save.
What's next?
Now that you have applied a partial payment to some transactions, you can later apply a new payment to this balance (or chargeback) at any time. The remaining amount to be paid will remain on the customer account until it is paid or an arrangement is made with the client (often called an allowance).
If you're looking for more help with related transactions and processes, take a look at these handy articles and explore them further!
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