Sometimes a debtor pays an invoice after you have already charged it back (bought it back from the client's reserve). The invoice is closed with a $0.00 balance, so it does not appear in the payment's invoice list by default. You can still apply the payment to that invoice. The money then goes straight into the client's Cash Reserve.
Before you start
- Create or open the unapplied payment as usual, with the client and debtor filled in.
- Have the invoice number of the charged-back invoice ready.
Steps
Steps 1–2: Open the Zero balance invoices filter
On the payment, click the Filter icon above the Invoices list (1), then choose Zero balance invoices (2).
Steps 3–4: Turn the filter on
Set Zero balance invoices to Yes (3), then click Apply (4). The list now includes closed invoices with a $0.00 balance, including charged-back invoices.
Steps 5–7: Select the invoice and apply the payment
- Check the box next to the charged-back invoice (5). If you don't see it, search by invoice number, or remove the Client / Debtor filter chips.
- Type the payment amount in the Payment field on the right (6).
- Click Apply Payment (7).
The orange OVER tag and the "payment amount is over than the invoice amount" warning are expected here. The invoice balance is $0.00, so any amount shows as over. Go ahead and click Apply Payment.
What happens when you apply it
- The full amount posts to the client's Cash Reserve as PAYMENT ON CLOSED INVOICE (GL 4004).
- No fees are charged, and the invoice stays closed.
- The payment stays linked to the original invoice. The Chargeback Report shows it under Total Amount Recovered.
- You can see the entry under Ledgers › Cash Reserve, filtered to the client.
Quick reference
| Situation | What to do |
|---|---|
| Debtor pays an invoice that was already charged back | Zero balance invoices = Yes, select the invoice, Apply Payment |
| One payment covers a charged-back invoice and open invoices | Turn on the filter, select all of them, and enter each invoice's amount so the total matches the payment |
| Payment is for an invoice that was never entered in FactorCloud | Use an Out-of-System (OOS) invoice instead |
| Applied to the wrong invoice or client | Withdraw the payment the same day; after that, see Why a Payment Can't Be Withdrawn |