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This article is for Drake Accounting 2019. To view this article for Drake Accounting 2018, click here

See the Table of Contents below for more information.

Apply Payments to a Single Outstanding Invoice or Multiple Invoices

  1. Go to Receivables > Payments.
  2. Select the customer from the customer list.

  3. Click on the invoice to which the payment should apply.

    The amount in the Invoice Total column is the full amount of the invoice. The amount in the Balance column is equal to the Invoice Total less any payments and credits, plus service charges and penalties.

  4. Click the  in the Transactions section of the Payments window (bottom left).

  5. Enter the payment date using the Transaction Date drop list.
  6. Enter the amount of the payment in the Payment Received field.
  7. Select the payment method from the Payment Type drop list.
    • If the Payment Type is Check, enter the Check Number (if known).
    • If the Payment Type is Credit/Debit Card, select Credit/Debit Card.
  8. Select the Transaction Type for the payment using the Payment drop list (on the right). 

   

   9. Click Save

Making an Adjustment

Adjusting entries can be made to correct an incorrectly entered payment, credit, or just about anything else regarding an invoice.

To make an adjusting entry, complete the following:

  1. Go to Receivables > Apply Payments.
  2. Select the customer from the customer list.
  3. Click on the invoice to apply the adjustment.
  4. Click the  in the Transactions section of the Payments window (bottom left).
  5. Enter the refund date using the Transaction Date drop list.
  6. Enter the amount in the Credit field.
  7. Select the transaction code from the Credit drop list.
  8. Enter a note regarding the credit (optional).
  9. Click Save.

Processing Credits

To process a refund or credit for a payment made on a receivables invoice, complete the following:

  1. Go to Receivables > Apply Payments.
  2. Select the customer from the customer list.
  3. Click on the invoice to apply the refund or credit.
  4. Click the  in the Transactions section of the Payments window (bottom left).
  5. Enter the refund date using the Transaction Date drop list.
  6. Enter the amount of the refund in the Credit field.
  7. Select the transaction code from the Credit drop list.
  8. Enter a note regarding the refund or credit (optional).
  9. Click Save.

Writing Off Bad Debt

There may be times when all of the unpaid portion of an outstanding invoice may need to be written off. The amount of the write-off deducts from the Invoice Balance and the customer’s Total Amount Owed.


Drake Accounting assumes the write off amount is the full amount of the selected invoice’s outstanding balance.

To make a write-off entry, complete the following:

  1. Go to Receivables > Apply Payments.
  2. Select the customer from the Customer list.
  3. Select the invoice to write off.
  4. Click the  in the Transactions section of the Payments window.
  5. Select the Write Off check box. The invoice total and the amount of the write off display beside the Write Off check box.
  6. Select the transaction type from the Transaction drop list.
  7. Enter the date of the write-off using the Transaction Date field.
  8. Click Save

Reversing and Correcting a Payment

How you go about correcting a payment depends on if you are using the bookkeeping option (the Generate Accounting Transactions option is select under Receivables > Options > General Options). Correct payments from individual customer invoices. 

The amount of the reversed payment adds back the amount to the Invoice Balance and the customer’s Total Amount Owed.

Correcting a payment when using the bookkeeping option requires two separate transactions:

  1. To reverse a prior payment.
  2. To enter the corrected payment amount.


To correct a payment amount, complete the following:

  1. Go to Receivables > Payments.
  2. Select the customer from the Customer list.
  3. Select the invoice with the payment to reverse or correct.
  4. Click the  in the Transactions section.

    If you are not using the bookkeeping option, you can delete the payment that is incorrect in the Transactions section by selecting the payment and clicking . Then enter the correct payment information.

  5. Enter the Transaction Date.
  6. Enter the amount of the payment to reverse in the Payment Received field.
  7. Select the appropriate reversing transaction type from the Payment drop list to the right of the Payment Received field.
  8. Select the Payment Type.
  9. Click Save
  10. Next, enter the correct payment information. 

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  Visit our Drake Accounting website

  Visit the Drake Software website





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