Short answer
If the customer balance was brought into Balansix as an opening subledger item, match the later bank receipt against that opening balance. Do not post the receipt again to current-year sales simply to remove the debtor.
Steps
- Open the bank receipt or customer settlement workflow.
- Locate the customer opening balance or brought-forward debtor item.
- Allocate the receipt against the opening item. Partial settlement is allowed where only part has been received.
- Confirm the customer balance reduces and the debtor/control position agrees.
- If the opening balance is not available for matching, review the opening subledger setup rather than posting compensating income.
What should happen
The customer opening balance should reduce by the amount allocated. A fully settled opening debtor should clear from the customer balance and the related control position.
If it still does not clear
Check that the opening customer detail agrees to the debtor control total and that the bank receipt has been allocated to the opening item rather than coded as new sales. If the opening item is missing from the allocation list, contact support with the client, period and customer.
Why posting to sales is wrong
An opening customer balance is a debtor carried forward from the prior year. The sale was already recognised as income in the earlier year, so the later receipt settles the debt. It is not new income.
Coding the receipt to current-year sales would double-count turnover, overstate profit and leave the old debtor uncleared. Allocating the receipt to the opening item keeps the customer ledger, the debtors control account and the VAT position consistent.
Frequently asked questions
Where should opening customer balances come from?
From the aged debtors or sales ledger listing at the previous year end. The individual items should total the debtors figure in the opening trial balance.
What if the customer never pays?
Review it as a potential bad debt at the appropriate time. Record the write-off as a separate, documented adjustment rather than leaving it in the opening balance indefinitely.
Does allocating a receipt affect VAT?
For clients on cash accounting, allocating a receipt to an invoice carried in as an opening item is what triggers the output VAT on that invoice.