Allocating a customer invoice payment from an internal bank account

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  • Updated 3 weeks ago
Hi - I have a 'security' bank account held in the name of customer/s.  One of the customers wants me to use the funds held on their behalf in that account to pay their outstanding invoice.  How do I process this transaction.  I can only transfer from that account to another account in the ledger but does not allow me to allocate it to a specific invoice.
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Danni

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Posted 3 weeks ago

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Kevin Russell, Accredited Partner

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Why dont you receive the payment into the security acount and transfer the funds from the security account to your own account?
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Danni

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Hi Kevin  - thanks for the suggestion.  The transferring of funds isn't actually a problem.  The customer's money is already in the security account and they would like me to use it to pay their outstanding invoice. There is nothing to 'receive' as such. The problem is, I don't know how to allocate the funds in that account against a specific invoice to record it as being paid.
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Kevin Russell, Accredited Partner

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You could create an invoice credit and allocate it to the securiry deposit account. You could then use the credit to pay the inboice. Thanks for asking.
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Glenda Veale

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Are you able to choose that bank account from the drop down box when paying the invoice?  If not transfer the funds to your trading account (journal entry only) and then pay from that account.