How to offset balances between invoices using $0.00 Payment Transfer in Accounts Receivable (AR)

EPASS Support

17-Apr-2026

Use this process when a customer has one invoice with a credit balance & another invoice has a debit balance .
 

Purpose

• Clears offsetting balances between invoices
• Marks invoices as paid in full
• Ensures only outstanding invoices appear on customer statements

Solution

Follow the steps below:

Step 1: Create Payment Transaction

• Navigate to:
  AR → Transaction Processing → Add → Payment
• Select the customer
• Enter:
  • Amount: 0.00
  • Payment Type: PT (Payment Transfer)
• Add a comment
• Go to the Distribution section
• Select the relevant invoices
• Set “Pay” = Yes for both invoices (credit and debit)
• Click OK
• Post the payment transaction

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Step 2: Post AR Transactions

• Navigate to:
  AR → Post Transactions

Step 3: Drop Paid Invoices

• Run:
  AR → Drop Paid Invoices