Ah, ok thanks for that. I get it. That's very helpful.
We have international sales that sometimes get convoluted for a variety of reasons - single payments that include the balance for one invoice and a deposit for another, backorders realized after they already paid for the full invoice amount, etc.
I use a variation of a customer advance payment recording method that will show a credit memo in the list, which is better for clarity between accounting and sales.
- I make a sales receipt for the payment and charge it to a Customer Advance item that's linked to an Other Current Liability account.
- I then create credit memos and use the same Customer Advance item - one credit memo for the actual amount of the invoice, and another for the overpayment.
- I can then easily see there's credit we can use. Sometimes we use it for other invoices, but sometimes they overpay to cover the fee that our bank charges to receive the wire. I create another invoice using a wire fee item then apply the credit to that.
That way gets me the results, but it seems overly complicated to me. I would love to hear if you have a better way.
