Question asked by Victoria Anne Rimington 8 years ago
Hi
I couldn't understand why my customers, all prompt payers, have ever increasing balances owed. On further investigation I have numerous occasions where money received has been negated by an equal and opposite transaction starting with the reference REC00 - what am I doing wrong?
Hi Victoria - I don't quite follow how this can be creating increasing balances owed but, in case it helps, for those who create invoices to customers to record their income, when the money arrives it offsets the unpaid invoices.
On the other hand, in cash businesses, where there's no invoice created the income is recorded from the money coming in and so, when explaining the bank entry, instead of allocating it to an invoice you put it to an income account recording the VAT etc.
Behind the scenes, with these cash sales, CB actually creates its own invoice (prefixed REC) and pays it off.
When you look at the Invoices page or client transactions you will see both INV & REC invoices.
Where problems arise is where people don't realise this differentiation and so raise invoices to clients then double up on the income by explaining the money in as income (RECs). In such cases the money in transactions have to be voided and re-explained as money to be allocated to unpaid invoices.
Best answer
You must 