A payment is only useful if it is attached to what it settles. An unallocated receipt makes the customer’s balance right and every individual invoice wrong.
Steps
- Go to Sales documents → Payments and choose New, or open the invoice and choose Record payment.
- Pick the customer. Their open invoices are listed with what is outstanding on each.
- Enter the amount received, the date and the method.
- Allocate it across the invoices. A single receipt can settle several.
- Save. Each invoice updates to paid or part-paid, and the ageing report follows.
Allocate on account only when you have to. A payment received before the invoice exists can sit unallocated, but go back and allocate it when the invoice is raised, or it will still be showing as outstanding at the year end.
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