Tracking Payments and Outstanding Balances

#Payment Recording

#Recording Individual Payments

1. Open the invoice
2. Navigate to Payments
3. Click Add Payment
4. Enter the Payment Amount
5. Select the Payment Date
6. Enter the Payment Reference (check number, bank transfer ID, card last 4 digits)
7. Optionally, note the Payment Method (bank transfer, check, credit card, etc.)
8. Click Save

The invoice state automatically updates:

• OPEN to PARTIALLY_CLEARED if payment is less than invoice total
• OPEN to CLEARED if payment equals invoice total

#Batch Payment Recording

Record multiple payments at once:

1. Navigate to Payments

2. Click Record Batch Payments

3. Upload a CSV with payment data:

   • Invoice Number or ID
   • Payment Amount
   • Payment Date
   • Payment Reference

4. Review the parsed data

5. Click Import

Light validates each payment and shows any errors before importing.

Good to know: Overpayments are tracked as credits that can be applied to future invoices.

#Payment Application

When a payment can satisfy multiple invoices:

1. Navigate to Unapplied Payments
2. Find the payment record
3. Click Apply Payment
4. Select which invoice(s) to apply it to
5. Light suggests optimal allocation based on invoice age
6. Click Apply

The system updates invoice states accordingly and creates GL entries.

#Tracking Invoice Status

#Invoice States and Meanings

• DRAFT: Created but not finalized; no GL entries
• POSTED: Finalized and GL entries created; awaiting payment
• OPEN: Posted and ready for payment
• PARTIALLY_CLEARED: Received partial payment; additional payment due
• CLEARED: Fully paid or written off
• ARCHIVED: No longer active; retained for historical records

#Viewing Payment History

1. Open an invoice
2. Navigate to Payment History
3. View all payments received with:
   • Payment amount
   • Payment date
   • Payment reference
   • Applied-to invoices
   • User who recorded the payment

#Outstanding Balances

#Invoice Balance Dashboard

1. Navigate to Dashboard or AR Summary

2. View key metrics:

   • Total Outstanding: Total amount owed across all customers
   • Overdue: Amount past due date
   • Current: Amount due within 30 days
   • Future: Invoices not yet due

3. Drill down to see detailed invoice listing

#Customer Balance Statement

View what individual customers owe:

1. Open a customer
2. Navigate to Outstanding Invoices
3. View all unpaid and partially-paid invoices
4. See customer's Total Outstanding Balance
5. Optionally, generate and email a Statement to the customer

#AR Aging Analysis

The AR aging report groups outstanding invoices by how overdue they are:

1. Navigate to Reports > AR Aging

2. Select the reporting date

3. View aging buckets:

   • 0-30 Days: Not yet due or due within 30 days
   • 31-60 Days: 31-60 days overdue
   • 61-90 Days: 61-90 days overdue
   • 90+ Days: More than 90 days overdue

4. See totals and percentages by bucket

5. Click into buckets to see specific invoices

6. Filter by:

   • Customer name or type
   • Currency
   • Company entity
   • Customer status (active/archived)

7. Export the report as Excel or PDF

Tip: Use AR aging to identify collection priorities. Focus on the 90+ day bucket first.

#Collection Management

Track collection activities on overdue invoices:

1. Open an overdue invoice

2. Navigate to Collection Notes

3. Click Add Note

4. Record collection activities:

   • Follow-up call made
   • Email sent
   • Payment promised
   • Dispute noted
   • Other actions

5. Click Save

These notes are visible to your entire AR team and help coordinate collection efforts.

#Writing Off Invoices

For invoices that cannot be collected:

1. Open the invoice
2. Verify it's in PARTIALLY_CLEARED or CLEARED state
3. Click Write Off
4. Enter the Write-off Amount (partial or full)
5. Select the Reason (bad debt, dispute, etc.)
6. Provide a Description
7. Click Confirm

Light creates an adjusting journal entry to write off the uncollected balance.

#Customer Credit Management

Credit balances from overpayments or credit notes:

1. Navigate to Customer Credits
2. View all customers with credit balances
3. Open a customer's credit
4. Click Apply Credit to Invoice
5. Select an open invoice
6. Light automatically applies the credit
7. Click Apply

#Related Articles

• Invoice generation and customization
• Sending invoices and payment reminders
• Customer credit notes
• AR aging reports