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arkvalleyinfo
October 16, 2018
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What does it mean when my overdue amount for a customer is greater than my open invoices for that same customer?

  • October 16, 2018
  • 4 replies
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I have a customer that has never paid full amounts for invoices over the past decade and has a considerable amount currently due and also significantly past due. However, the overdue amount is greater than the open invoices by almost $24k.  What does that mean?  I am trying to reconcile their account with their office and want to make sure that I am not creating additional problems by submitting my final amount due with accounting errors.

    Best answer by john-pero
    Overdue is the total of the original unpaid invoice regardless of remaining balance.

    Example You Invoiced me $5k 90 days ago and I paid $3k. Open Invoice amount is $2k but overdue is $5k

    4 replies

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    Malcolm Ziman
    October 16, 2018
    Where do you see the term "overdue"?  I see "Open Balance" on the AR reports. Never mind. I see it on the money bar.
    john-pero
    john-peroAnswer
    October 16, 2018
    Overdue is the total of the original unpaid invoice regardless of remaining balance.

    Example You Invoiced me $5k 90 days ago and I paid $3k. Open Invoice amount is $2k but overdue is $5k
      M
      Malcolm Ziman
      October 16, 2018
      This does not sound right. It's the other way around, if anything
      M
      Malcolm Ziman
      October 16, 2018

      Open includes all invoices even those that are not yet due, less any payments on these invoices.  It's the balance on the account.

      Overdue is just amounts that are past due.

      I don't see how overdue can be greater than the Open amount.

      edit: The overdue can be greater if there are unapplied credit memos





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        Malcolm Ziman
        October 16, 2018
        Would the person who marked my answer as unhelpful please leave a comment as to what it is that you found unhelpful.  This is a sharing forum and it would be useful for me to learn what the problem was with my answer.  Thanks.
        A
        arkvalleyinfoAuthor
        October 16, 2018

        Thank you! That makes perfect sense now.  Total overdue is the total amount billed regardless of the open amount due until the invoice is paid in full.  

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        Malcolm Ziman
        October 16, 2018
        "Total overdue is the total amount billed" not correct. Its the amount due
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