The Overdue Invoice Rules

An invoice is overdue as soon as 

a) The due date passes 

b) A payment is not allocated against the invoice

Analysis of an Overdue Account

What follows is an analysis of why a customer, who had paid their account, received an overdue notice.

This is their invoice. Of interest is the due date, and the payment ALLOCATION date.

Note Payment and Payment Allocation can be two separate dates.

When you receive a payment you are prompted to allocate it.

This means the allocation will be at the same time as the receipt.

If you select 'no' and process the allocation later, then the day of allocation could be different than the receipt date.

Let us look at this event in more detail by going to the Customer's Account

So in this actual case, the customer's invoice was overdue 6 days at which time they paid.

HOWEVER

The allocation of the payment to the invoice was not done at the time of the receipt.

In the above image of Payment Allocations the allocation was done on the 29\6\2020, 3 days after receipt.

SO WHEN OVERDUE NOTICES WERE PROCESSED:

a) The customer's account was actually $131.10 because of a new invoice

b) The payment had not been allocated against the invoice so it was overdue

Consequently an overdue notice was sent:

IN SUMMARY

In this case, the reason the customer received the overdue notice was because the receipt had not been allocated before the overdue notices were processed.

Click here to find out how to process allocations: 

Adjusting the Global Overdue Setting

Many people would consider 'overdue by 6 days' to not actually be overdue and complain about receiving an overdue notice. However at all times, you need to exercise a strong debtors management practice and we all do understand, overdue is overdue so we should not complain when we receive a notice.

If you are trying to establish an overdue debtors management policy, and you have SoEasy's Advanced Debtors Management Module, you can adjust the period at which invoices are considered 'overdue'.

Platform > Setup > Invoices > Invoice Reminders