When adjusting an invoice that has both a late fee and an overpayment or misapplied payment, attempting to modify line items directly can result in mismatched statements or lingering account balances.
The cleanest and most accurate way to resolve this is to reset the payment sequence: remove the applied payment first, toggle off the late fee, re-apply the correct payment amount, and issue any remaining overpayment as an account credit.
Step-by-Step Resolution Process
Step 1: Delete the Existing Payment
- Go to Active Invoices page
- Click the Invoice number to edit the invoice
- Click the red trash can icon next to Recorded Payments to remove the payment from the invoice
Step 2: Remove the Late Fee
- Go to Active Invoices page
- Select the checkbox next to the customer's invoice.
- Click the Remove Late Fee button in the top action toolbar to remove the late fee.
Step 3: Re-Apply the Payment & Issue Account Credit
- Add the correct payment amount back to the open service charge.
- If the customer overpaid (e.g., paid for a late fee that was subsequently removed), allocate the overpayment amount directly to the customer’s Account Credit balance.
Step 4: Apply Credit & Generate Statement
- Apply the newly created account credit toward the current or remaining balance.
- Click Generate Statement to print or send an updated, clean statement showing the correct remaining balance.
Related Documentation
- Active Invoices Overview – Learn how to manage, bulk-edit, and filter open customer invoices.
- How to Fix Misapplied Payments – Step by step instructions on how to fix payments that have been misapplied to an invoice.