A client will have a credit balance for its accounts receivable balance if a payment is entered and no fees or costs have been billed. These payments are considered unapplied or unallocated payments. Credit accounts receivable balances are handled differently by the various reports that include balance due information:

Accounts Receivable

Report

If the payment is a Type 1 payment (i.e., Regular Payment), the payment is shown in a separate field called Unapplied Payments. The Detail and Summary Accounts Receivable Reports show the Balance Due both with and without the Unapplied Payments. However, if the payment is a Type 2 payment (i.e., Fee Payment), the payment is shown as a credit balance in Fees Due (0-30 days). Likewise, if the payment is a Type 3 payment (i.e., Expense or Advance Payment), the payment is shown as a credit balance in Expenses Due (0-30 days) or Advances Due (0-30 days). Therefore, Type 2 and 3 payments will affect the total Balance Due on the Accounts Receivable Report.

Accounts Receivable by Invoice Report


Collections Report All unapplied payments (i.e., Type 1, 2 or 3) are shown as "Unapplied Payments". The Accounts Receivable by Invoice Report shows balance due figures both before and after Unapplied Payments are applied.
Receipt Allocation Report All unapplied payments (i.e., Type 1, 2 or 3) are shown as "Unallocated Payments". The Receipt Allocation Report shows balance due figures both before and after Unallocated Payments are applied.
Client Ledger Report Unapplied payments are included in the Total Balance Due and are not shown as a separate line item.