How do I transfer one customer’s invoice balance to another customer?

Scenario: Patricia and Brandon are business partners and are also customers of Zylker Organization. Patricia has an unpaid invoice and requests Zylker Organization to collect the amount from Brandon. In order to do that, a user from Zylker rganization must record payment for the unpaid invoice of Patricia, and record the amount as a debit note for Brandon.

Here’s how you can close the invoice of one customer and record the receivable for another customer:

First, create an Other Current Liability account to track the balance transfer. Here’s how:

  • Go to Accountant on the left sidebar and select Chart of Accounts.
  • Click + New Account in the top right corner of the page.
  • Select Other Current Liability as the Account Type and enter the Account Name as Customer Transfer Adjustment.
  • Click Save.

To close the customer’s invoice balance, you need to record payment. Here’s how:

  • Go to Sales on the left sidebar and click Invoices.
  • Select the invoice for which you want to record payment.
  • Click Record Payment and enter the required details.
  • Click Configure Payment Mode in the Payment Mode dropdown.
  • Select + Add New and enter the mode as Adjustment.
  • Click Save.
  • Select the Customer Transfer Adjustment account in the Deposit To field.
  • Click Record Payment.

To track the receivable for customer, you need to raise a debit note. Here’s how:

  • Go to Sales on the left sidebar and select Invoices.
  • Click the + New dropdown and select New Debit Note.
  • Enter the required details.
  • Go to the Item Table section. Enter the description as Balance Transfer, the tax as Out of Scope and enter the rate as the amount equivalent to the customer’s invoice balance.
  • Click the More icon and select Show Additional Information.
  • Enter Customer Transfer Adjustment account in the Account field .
  • Click Save.

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