We'll get this fix so you can continue reconciling your account, DH911.
When using the Receive payments option, it only affects the Accounts Receivable and the Undeposited Funds or the bank accounts. Hence, the payments don't reflect on your Profit and Loss report.
Using the Receive payments option without associating to open invoices will show as credit to your customer accounts. As a result, you have negative amounts on your Accounts Receivable account.
There are a few ways to correct this. You can do either of the following process:
To pay the invoices using the received payments, here's how to do it:
- Open the invoice and click Apply Credits at the top.
- Under Credits, mark the invoice payment you want to apply and select Done.
After clicking Done, the invoice will be Paid automatically.
Moving forward, you can use Sales receipt or bank deposit to record your sales transactions. You can also consult your accountant to determine which transaction type suits your business setup.
Once you're done, you can reconcile the account.
Feel free to leave your replies if you have additional queries or clarifications. Have a great day!