Invoicing is a fundamental accounting concept used to track goods and services provided and the amount due from a customer. In XenDirect, invoices are linked to clients and can be made payable by an individual or a company.
This guide explains invoice structure, balance calculations, and the impact of payments, refunds, and OnAccount transactions within XenDirect.
Applies To: Enterprise | Plus | Basic
What is an Invoice?
An invoice is a list of goods or services provided to a customer, including a statement of the total amount due.
Invoice Components in XenDirect
- Invoice Line Items: Goods and services recorded on an invoice.
-
Debit Line Items: Increase the total amount due.
- Examples: Fees, tuition, textbook purchases.
-
Credit Line Items: Decrease the total amount due.
- Examples: Discounts, returns.
What is the Balance Due?
The Balance Due on an invoice is calculated as:
Invoice Amount Due - Payments Made = Balance Due
Balance Due is not a recorded value in XenDirect—it is dynamically calculated whenever viewed in the system or a report.
Example:
- Invoice Amount Due: $539
- No payments made → Balance Due: $539
- $400 payment applied → Balance Due: $139
How to Balance an Invoice
Invoices can be balanced using two methods:
- Add or adjust invoice line items.
- Add or adjust invoice payments.
This can be done manually or through workflow functions in XenDirect. The Invoice Amount Due should always reflect the correct amount owed, and the Balance Due should equal the Invoice Amount Due minus any payments made.
OnAccount Transactions and Invoices
OnAccount Given
- Does not affect the invoice.
- No money has been transferred or paid yet.
- The Invoice Amount Due and Balance Due remain unchanged.
OnAccount Used
- Treated as a payment and reduces the Balance Due.
- Funds are transferred from OnAccount to apply toward the invoice.
Refund Transactions and Invoices
A refund returns money to the client, which reverses a portion or all of a previous payment. After issuing a refund, the Balance Due increases because a portion of the payment was removed. However, the Invoice Amount Due remains unchanged.
Example:
-
Before Refund:
- Invoice Amount Due = $539
- Payment = $539
- Balance Due = $0
-
After a Refund of $139:
- Remaining Payments = $400
- Invoice Amount Due = $539
- New Balance Due = $139
After issuing a refund, if no additional payments are expected, the Invoice Amount Due must be adjusted. This can be done by modifying invoice line items manually or using a XenDirect workflow.
Conclusion
Understanding the invoice structure, payment processing, refunds, and OnAccount transactions in XenDirect ensures accurate financial tracking. By properly adjusting invoice line items and payments, users can maintain an accurate Balance Due and reflect correct financial data. For further assistance, refer to related articles or contact support.