Hi Dalal,

You did not do anything incorrect.  

After the invoice 1314-005 ($170.00) was paid by receipt 6174 ($85), the outstanding balance of the invoice was $85.00.  

Since the remaining balance was not paid by the customer, you created another invoice 1314-005WRT-OFF with a negative amount of -$85.00.  You had 2 invoices.  One was $85.00 (remaining balance from 1314-005) and one was -$85.00 (new negative invoice 1314-005WRT-OFF) .

You paid them both by using receipt 6250 and the net was zero.  That's why there are 2x receipt #6250.  You paid 2 invoices (1 positive and 1 negative) by 1 receipt and they offset each other so the net was zero

Logically speaking, the only amount from this customer that was debited to you bank was the $85.00 from receipt 6174 as per your age report.  

The $85.00 in a/r may be from another customer but not this customer.

Hope this helps.

Keith,

Look closer at the second transaction of this pair  it is an invoice that was reversed after it was paid, and there are two journal entries.  The payment wasn't reversed.

This would have created a 'CM' transaction.  

20/11/2013 WRT-OFF1314-005, Iris Darhy Cash J1596 85.00

20/11/2013 Reversing J1596. Correction is J1598. ADJCash J1597 85.00

Hi Randy,

Thanks for the clarification.  :)

Thank you Randy, I will review it again.

Thank you Randy, I will review it again.