FAQ: Contact Balances

Q: Why does a contact's balance differ from the total of their invoices?

A: The balance accounts for payments, adjustments, and credits—not just invoices. For example:

• If you invoice a customer for $1,000 and they pay $400, their balance is $600, not $1,000.
• If you issue a credit memo or apply a discount, that also changes the balance.
• If the contact has multiple currencies, each is tracked separately, so the "total" balance is actually multiple balances in different currencies.

Check the statement of account to see all transactions that affect the balance.

Q: What is the difference between a balance and an advance?

A:

• Balance is the amount a contact owes you (receivable/payable) based on issued documents (invoices, bills) minus payments.
• Advance is money paid or received in advance of any invoice or bill. It sits as a credit waiting to be applied to future documents.

Example:

• You issue a $1,000 invoice to a customer. Their receivable balance is now $1,000.
• The customer pays you $500 in advance (for a future purchase). They now have a $500 advance and a $1,000 balance (two separate things).
• When they purchase $500 more, you can apply the advance to that new $500 invoice, reducing what they owe.

Q: Can I merge or combine balances from multiple contacts?

A: No. Each contact is tracked independently. If you want to consolidate two contact records (e.g., you accidentally created two profiles for the same person), contact your administrator about merging the contacts. Merging will combine their balances and transaction history.

Q: Why does the system show a different balance than my supplier's statement?

A: Common reasons:

1. Timing — You may have recorded a transaction that the supplier has not yet. Ask them to send an updated statement.
2. Different currency — If you work in different currencies, make sure you are comparing the same currency. Exchange rates do not affect the balance in its original currency.
3. Unreconciled transaction — A payment or adjustment may be pending. Check if there are any draft or unpublished transactions.
4. Data entry error — Double-check that invoice amounts and payments are recorded correctly.

Generate a statement of account in Usystems and compare it line-by-line with the supplier's statement to find discrepancies.

Q: If I delete an invoice, what happens to the contact's balance?

A: When you delete an invoice, the system removes its impact on the contact's balance. The balance is recalculated to exclude that invoice and any associated payments or adjustments. Always verify the new balance is correct after deletion.

Q: Can a contact have both a receivable and payable balance at the same time?

A: Yes. For example:

• You supply a vendor with inventory (they owe you money = receivable).
• That same vendor supplies you with different products (you owe them money = payable).

You may end up with both a receivable balance and a payable balance for the same contact. These are tracked separately and typically offset each other only when you manually apply them.

Q: How do I apply an advance to an invoice?

A: When creating or editing an invoice or bill, look for a "Balance Allocation" or "Apply Advance" section. Select the contact's advance and the amount to apply. The advance is then deducted from the total amount due. See Using a contact's balance to pay for documents for detailed steps.

Q: Why is the balance negative? Does the contact owe me, or do I owe them?

A: The sign convention depends on the contact type:

• For customers (receivable): a positive balance means they owe you; a negative balance means you owe them (they have an overpayment or credit).
• For vendors (payable): a positive balance means you owe them; a negative balance means they owe you (they have an overpayment or credit).

Always check the context. If unsure, look at the statement of account, which clearly labels receivable and payable columns.

---