Manually distributing payments to invoices

What is the meaning of distributing payments to outstanding invoices?

Daftra software provides the functionality of distributing payments to outstanding invoices either automatically or manually.

Manual distribution of payments can be done on outstanding invoices to deduct them from the client’s accounts receivable balance.

 

• Note: First, make sure the client has invoices that need to be paid.
  
• Note: First, make sure to deactivate the “Auto Pay Invoices if the Client Has Available Credit” feature. For more details, refer to the “Invoice and estimate Settings” guide.
  

Adding and distributing new payment balance in the client profile

1. Click on “Clients” from the main menu.
2. Click on “Manage Clients”.
3. Click on the desired client.
4. Click on the “Add Payment Credit” button.
5. Enter the payment amount and complete the payment details as required. For more details, you can refer to the “Adding Payment Credit“ guide.
   
6. Under the “Invoices to be paid” section, enter the required information as follows:
   
   • “Invoices”: Choose the invoice to be paid from the drop-down menu.
   • “Distribution Amount”: Specify the amount to be deducted from the accounts receivable to complete the payment. You can also click the button on the right side of the field to automatically enter the full invoice amount.
     • Note that the distribution amount should match the total value of the invoice to avoid the system rejecting the distribution of the paid amount to the invoice.
     • Example: If the required payment amount is 230.138, and the total invoice value is rounded to the nearest two decimal places as 230.14, entering a distribution amount of 230.14 will be rejected by the system because the distributed value exceeds the required payment amount.
   • Use the “Add” button to display a new line and add more than one invoice for payment.
7. Click on the “Add Payment” button once you are done.

Distributing existing credit balance in the client profile

• If the client has a previous credit balance from payments, refunds, or other transactions, this balance can be distributed to invoices without manually entering a payment balance.

1. Click on “Clients” from the main menu.
   
2. Click on “Manage Clients”.
3. Click on the desired client to view their profile.
   • The client’s credit balance will appear at the top of the screen.
4. Click on the “Distribute” link next to the client’s credit.
5. Enter the required information for the invoices to be paid as follows:
   • “Invoices”: Choose the invoice to be paid from the drop-down menu.
   • “Distribution Amount”: Specify the amount to be deducted from the credit balance to complete the payment. You can also click the button on the right side of the field to automatically enter the full invoice amount.
     • Note that the distribution amount should match the total value of the invoice to avoid the system rejecting the distribution of the paid amount to the invoice.
     • Example: If the required payment amount is 230.138, and the total invoice value is rounded to the nearest two decimal places as 230.14, entering a distribution amount of 230.14 will be rejected by the system because the distributed value exceeds the required payment amount.
   • Use the “Add” button to display a new line and add more than one invoice for payment.
6. Click on the “Save” button once you are done.