Tip #018 – Zero Payments


Tip #018
Zero Payments

What is a “zero payment”? most of you are asking.

A zero payment is a special kind of payment flowerSoft uses to get rid of transactions with credit balances.

For example, a customer owes you $150 but sends you a check for $160 instead.

What flowerSoft does in such cases is pay off the customer’s balance and then issue an overpayment credit for $10.

This overpayment credit is in the customer’s account as a credit balance transaction, in other words, it has a negative balance.

The same would happen if you give an account partial credit for flowers that did not last very long or any other reason that would generate a negative amount transaction.

This negative balance stays in the customer’s account until they make another purchase or you send them a check for the credit balance and then adjust their account accordingly.

Most of you will opt to keep the $10 until the customer makes another purchase, and that is perfectly fine.

Now, when the customer makes another purchase, let’s say for $50, flowerSoft will show that their account owes $40 because when it adds the open transactions, it finds one for $50 and another for $-10 which adds up to $40.

When you send a statement to the customer, the statement will say that they owe $40 and that should be what the customer sends you a check for.

Let’s say you do get the check for $40. When you apply that payment, you should be first selecting the credit balance transaction for $-10 which has the effect of increasing the payment amount to $50, and then selecting the invoice for $50. If you do this, then there is no problem. The account will not show any credit balances.

However, if you select the invoice for $50 first, flowerSoft will not let you select the credit balance transaction because it “thinks” that you’ve run out of money to apply towards open transactions.

This leaves the customer’s account with a $10 open charge and a $-10 credit balance.

They do equal to $0.00 but it is sort of confusing when you look at the account’s transactions. Hence the reason for “zero” payments.

If you have accounts that have both open charges and open credits, you can get rid of the open credits by entering a “zero” payment.

To find out how and when to enter “zero” payments, read the next tip (Tip #019)

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