Customer's Open balance is $0.00, but Overdue balance shows as $270,000.00

I'll share some tips in handling loan to a customer, LAWojo.

The reason why the program shows an open balance even though all the loans have already been paid is that the deposit has been recorded as an account receivable. Additionally, the program will treat those deposits like an invoice and we'll see an overdue status because we recorded them using the A/R account.  To fix this, we'll have to delete all those transactions then start all recording your loan using the Invoice and Receive payment option to ensure that you'll have accurate reports.

We can click each transaction, then select Delete from More option to get rid of them. Then, you can follow the steps that I've listed below to track your customer loan.

 First, let's create a product/service item for the loan:
 

1. Select Sales from the sidebar menu, then go to the Products and Services tab.
2. Click New, then Service.
3. Enter the item name (Example: Loan Payment Due).
4. In the Income account drop-down menu, choose the customer's loan receivable account.

Second, we'll have to issue an invoice to the customer:

1. Click the + New button, then select Invoice.
2. Choose the name of the customer from the Customer drop-down.
3. From the Product/Service drop-down, choose the Loan Payment Due item.
4. Select Edit Schedule, then enter your desired schedule.
5. Click Save when you're done.

Then, we'll have to use the Receive payment to receive customer payments:

1. Click the + New button, then select Receive Payment.
2. Enter the payment information.
3. In the Deposit to drop-down, choose Undeposited Funds.
4. Select Save and close.

Once done, we can now enter the deposit and adjust for interest received by adding the interest amount back into the loan receivable account and posting the interest to income:
 

1. Click the + New button, choose Bank Deposit.
2. Select the payment.
3. In the Add New Deposits section, choose the loan payable account from the Account drop-down menu.
4. Enter the amount of interest as a negative amount.
5. On the second line, select the interest income account then enter the amount as a positive number.
6. Click Save and close when you're done.

Check out this article that will in tracking customer loan according to different circumstances.

I also encourage consulting your accountant to know what's the best way of tracking your customer loan to avoid discrepancies and confusion.

In case you'll need to track all the invoices that are due on a particular day, we can pull up then customize your Transaction Detail By Account report.

I'll be right here to keep assisting if you have any other concerns or further questions about customer loans. Stay safe and healthy.