Application of customer payments against Invoices


J

JLP

Please assist in confirmation of GAAP -

If a customer has multiple open invoices of varying age, makes a payment,
references an invoice number on the check - is payment applied:

- To oldest invoice

- To invoice referenced on payment check

Thank you!

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P

paulthomascpa

Please assist in confirmation of GAAP -

If a customer has multiple open invoices of varying age, makes a payment,
references an invoice number on the check - is payment applied:

- To oldest invoice

- To invoice referenced on payment check

Thank you!


I'd follow published company policy to the letter.
 
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Joined
Dec 29, 2012
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Do yourself a favor and always apply the payment to the invoice the customer references. This way your ledger and the customers ledger should match. Contact the customer to find out why the older invoices are being skipped. There may be a underlying issue with the older invoice that needs to be addressed.
 

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