When the Paid Pre-Invoice Amount Exceeds the Amount of a Regular Invoice
You should not produce a regular draft or final invoice with an amount that is less than the fee amount of the paid pre-invoices to be applied to the regular invoice.
If you do, this will result in a regular invoice with a zero amount, with only a partial amount of the paid pre-invoice applied. The paid pre-invoice fee amount, only up to the gross fee amount of the regular invoice, will be applied.
DPS will not cancel a paid pre-invoice if the paid amount is greater than the amount applied to a regular invoice. As a result, the paid pre-invoice (its full fee amount) will be incorrectly applied to the next regular invoice that you create.
- Reverse the cash receipt for the pre-invoice by the fee amount that is in excess of the regular invoice amount.
- Create another new pre-invoice that matches the amount of the payment in excess of the regular invoice amount.
- Enter a cash receipt for the new pre-invoice.
The new pre-invoice and its payment can now be applied correctly to a future regular draft or final invoice.
- A client paid a $30,000 pre-invoice ($30,000 is the total fee amount on the invoice).
- The next regular draft or final invoice fee total is $12,000 before accounting for pre-invoices.
- Only $12,000 of the $30,000 paid pre-invoice will be applied to the regular invoice, so the final fee total for the regular draft or final invoice is zero.
The Pre-Invoice section of the regular invoice shows that $12,000 is applied to the invoice.
However, the $30,000 pre-invoice is not canceled because its total exceeds the regular invoice amount. Now, the full $30,000 will be incorrectly applied to the next regular invoice that you create.
- Reverse $18,000 from the cash receipt for the $30,000 pre-paid invoice.
- Create another new pre-invoice for $18,000.
- Apply a cash receipt for the $18,000 to the new pre-invoice.