Guidelines to understand the difference between the closing balance and total due in the customer account, and how to distinguish between credit and debit balance.
When you enter the customer page through Sales, then Customers, and click View next to the customer, you will see:
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Closing Balance:
It is the final amount required to be paid by the customer.- It includes:
- Sales invoices.
- Credit notes.
- Customer receipts.
- Manual entries added to the customer account.
- It includes:
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Total Due:
It is the accumulated amount on the customer from sales invoices only, and receipts and notes allocated only to the invoices. -
Overdue Invoices:
These are the outstanding amounts that have not been paid after the due date added in the invoice. -
Account Status (Debit or Credit):
- Customer accounts are normally debit.
- If the customer’s balance appears in parentheses ( ), this indicates that the balance is credit.
Additional Notes:
- Make sure to regularly monitor the customer statement to understand financial transactions and clarify balance details.
- Use the Customers report to easily identify the overdue balance status and outstanding amounts.
Search Keywords:
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What is the difference between closing balance and total due?
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If the customer’s balance appears in parentheses, what does it mean?
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Does the closing balance include all transactions?
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If I allocate a receipt to an invoice, where does it appear?
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Do manual entries affect the customer’s total due?
