Prepaid A/R

Q. An associate wanted to pre-pay a January invoice in December. I created the January invoice and applied the payment in December, but now my Receivables Reconciliation Summary report is out of balance. How do I fix this?

A. Leave it as it is. As soon as you get into January, AR will go back to $0 out of balance. It is currently out of balance, because you have a January invoice with a December paid date. In the future when this occurs enter the entire payment against the associates December invoice which will result in a credit balance on the associates AR balance. Then in January when you do the associates billing you will apply the credit against the January invoice