What does 'Automatically mark Invoices paid' do?
This allows you to automatically pay invoices from a client's balance. If you check this box, then, when you draft an invoice and send it to the client, TutorCruncher will look at the client's balance to see if they have enough to mark the invoice as paid.
For example, if you invoice a client for £300, and the client has already got an invoice balance of £400, then the client will receive an invoice that is marked as paid.
If you issue an invoice for £300 and the client has a balance of £200, then the invoice will be partly paid by £200. The default email sent to the client tells them this and lets them know they owe the company £100.
How to automatically pay invoices from the client's balance
This allows you to automatically pay invoices from a client's balance. If you enable the option 'Automatically mark Invoices paid' in System > Settings > Accounting Settings > General, TutorCruncher will look at the client's balance to see if they have the means to mark the invoice as paid whenever you draft an invoice and send it to the client.
Step by step process
TutorCruncher allows invoices to be automatically marked as paid or partly paid if the client has enough credit on their account to pay the invoice.
To understand how this works, it is advisable to first read the information on client balances from the link below.
This feature can be turned on by going to System > Settings > Accounting Settings > General and ticking 'Automatically mark Invoices paid'.
The best way to explain the feature is to show you an example.
Jane Doe has an Invoice Balance of £380 and an Available Balance of £0.
If we create a charge against her account it will be deducted immediately from the client’s credit. In this case, it is an ad hoc charge of £50 on a job.
If we check Jane Doe’s Balance History the newly created charge already shows up and a deduction of £50 from her credit has been made.
When we generate invoices the charge will be on an invoice as it hasn’t been invoiced for yet. The invoice breaks down all charges and reconciles the accounting.
Upon sending the invoice, it will be marked as paid.
The invoice the client receives will reflect the fact that it has already been paid from their balance.
If a client’s available balance doesn’t cover the full amount of the invoice, it will only be partly paid. The rest of the invoice will remain as unpaid in the system. This is reflected in the invoice the client receives.