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Why matching matters
An unpaid invoice is an amount a customer owes. When the customer pays, the payment usually settles that receivable; it should not create another sale of the same amount if revenue was already recorded under accrual accounting.
1. Follow a sample invoice
Illustrative example: You issue a $1,130 invoice including $130 HST. Under an accrual workflow, the invoice can create $1,000 revenue, $130 HST payable and $1,130 accounts receivable. When $1,130 arrives at the bank, match the deposit to the invoice so accounts receivable falls and bank cash increases without another $1,000 sale.
2. Check the payment
- Open the relevant customer invoice and review its outstanding balance.
- Locate the incoming bank deposit and compare date, currency, amount and reference.
- Use the available payment-recording or matching workflow, checking the result before posting.
- Confirm the invoice status and its remaining balance, then compare to the bank ledger.
3. Handle a partial payment
For a $1,130 invoice, a $400 customer payment leaves $730 due, assuming no credits or other adjustments. Verify that the unpaid amount remains in receivables and the bank deposit is represented once.
4. Troubleshoot exceptions
- Duplicate deposit: two imports of the same statement can make the account look overpaid.
- Several invoices paid together: reconcile the remittance advice and avoid guessing an allocation.
- Credit note or refund: check the customer's open balance before matching.
- Wrong currency: preserve the invoice and payment currency and check any exchange difference separately.
See invoice aging and reports for your accountant.
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