How to clear partially paid invoices

Why clear partially paid invoices?

Sometimes, an invoice remains partially paid and will never be fully paid. Common reasons include:

• A minor payment discrepancy (e.g., a few cents over or under the actual amount).

• An in-store purchase that still flows through as an invoice.

• A disputed invoice where you have paid less than the invoiced amount, and no credit note has been issued by the supplier.

Partially paid invoices remain in the Needs Action screen and are identified by an orange token.

How to clear partially paid invoices that are less than 10 cents 

1. Identify the Partially Paid invoice on the Needs Action screen.

2. Click the orange Partially Paid token.
   
   

3. Click Fully pay invoice.

Alternatively,

1. Open the partially paid invoice on the Needs Action page.

2. Select the More options dropdown.

3. Click Fully pay invoice.  

A balancing invoice is created behind the scenes and matched. This can be viewed in the Completed page. A success alert is displayed in the Needs Action page.

How to clear partially paid invoices that are greater than 10 cents 

1. On the Invoice side of the Needs Action screen, click +Record.

   • 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 

2. Enter the invoice details and apply the correct coding.

   • Use the same Invoice Date, Other Party, and Coding as the original invoice.

   • Ensure the Description explains the reason for the reversal. Suggested wording:

     • Reversal: in-store payment

     • Reversal: disputed amount

     • Reversal: overpaid

3. Click Save.                                              

4. Go to the Matching screen.

   • Select both the partially paid invoice and the contra invoice you created.

   • Click Link and Match.

   • The invoices will move to the Completed screen.

TIP: Regularly review outstanding invoices to ensure your financial records remain accurate.

NOTE: Consult your accountant for best practices on recording partially paid invoices in your business