Apply a Client Deposit to A/R (Posted Invoice)

These instructions will teach you how to apply a Client Deposit (i.e. a pre-payment) to a Posted Invoice. If you have an Invoice that has not been posted yet and you want to apply a Client Deposit to it, see this article.

Note: This article assumes that there is already a Posted Client Deposit or A/R Credit. If there is not, please see the article on how to Enter a Client Deposit.

1. Open the Receipt window

Navigate to Accounts Receivable ➤ Receipts.

Open the Receipt window

2. Create a New Receipt

Click the Create New Record icon or use the keyboard shortcut Command + N.

3. Apply the Client's Deposit to A/R

If the Invoice and the Client Deposit have both already been posted, you will see them both in the list of A/R documents in the Receipt window.

  1. Enter the Receipt amount of $0.
    • You must enter a check number but it doesn't need to be an actual number.
    • The Date should be the day that you want this A/R document to be closed as of.
  2. In the line items section, enter the negative amount on the Client Depost line (dep) and a positive amount in the A/R document line (ch).
    • These two amounts will clear each other. If there is still any remainder on either the Deposit or the Invoice, it will still be left open to be dealt with in the future.

Click OK to save and don't forget to Post!

See the effects on the General Ledger.

When the $0 Receipt is posted, the Client Deposits liability account will be Debited and the Client's Account's Receivable Sub-Account will be Credited.