Billing still showing open when using reconciliation gl account

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JoannaG

• November 28, 2022 15:11

There is an option to receive payment on a billing and have the shortfall hit another GL account - why does the billing not show paid?  If the journal entry is essentially built in - why would we have to make more journal entries to remedy the cash receipt?

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  Rebecca Ralls

  • November 29, 2022 06:08

  If the total of the adjustment + the total of they payment = the total of the billing, it should be marked as fully paid. You should be able to see in the billing the total cash applied + the total adjusted to understand why there’s a balance.

  As a general rule of thumb, you should NEVER use journal entries to adjust Billings (or payables). You should only use applied credit memos or cash receipts. If you use journal entries to make adjustments, even though the accounting will be correct, the billing will forever appear to be unpaid.

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