Overpayments (Credit Balance)
This account is credited when a payment is posted to a Corporate Client and NOT attached to a specific invoice. This posting can only be performed through the payment screen when the client is searched and the payment is applied to the 99999999 ‘Over-payment’ line.
A debit to this account is the result of payments being applied to invoices against this account. This posting can only be performed through the payment screen when the client is searched the radial option ‘Apply over-payment’ is selected.
The main use for this account is to prevent posting entries without an invoice number to the receivables account. Also, it reclassifies the over-payments as a liability (instead of a negative receivables) since the amount is owed to the Corporate Client.
The account balance represents over-payments by Corporate Clients that were posted to the account (not an invoice) and have not been applied to an invoice. Do not post journal entries to this account.