How do I transfer one customer’s invoice balance to another customer?

Here’s how you can close the invoice of one customer and record the receivable for another customer:

First, create an Other Current Liability account to track the balance transfer. Here’s how:

• Go to Accountant on the left sidebar and select Chart of Accounts.
• Click + New Account in the top right corner of the page.
• Select Other Current Liability as the Account Type and enter the Account Name as Customer Transfer Adjustment.
• Click Save.

To close the customer’s invoice balance, you need to record payment. Here’s how:

• Go to Sales on the left sidebar and click Invoices.
• Select the invoice for which you want to record payment.
• Click Record Payment and enter the required details.
• Click Configure Payment Mode in the Payment Mode dropdown.
• Select + Add New and enter the mode as Adjustment.
• Click Save.
• Select the Customer Transfer Adjustment account in the Deposit To field.
• Click Record Payment.

To track the receivable for customer, you need to raise a debit note. Here’s how:

• Go to Sales on the left sidebar and select Invoices.
• Click the + New dropdown and select New Debit Note.
• Enter the required details.
• Go to the Item Table section. Enter the description as Balance Transfer, the tax as Out of Scope and enter the rate as the amount equivalent to the customer’s invoice balance.
• Click the More icon and select Show Additional Information.
• Enter Customer Transfer Adjustment account in the Account field .
• Click Save.