Apply a Negative Invoice to a Positive Invoice

Contents

• Overview
• Enable Auto-Pay
• Create a Payment Run
• Apply a Negative Invoice to a Positive Invoice (Auto-Pay Disabled)

Overview

Negative charges can net out against positive charges. However, when the total invoice amount is still negative, Ordway supports refunding the customer for these negative charges.

Ordway supports applying a negative invoice to a positive invoice using different workflows depending on whether the customer has Auto-Pay enabled.

• Auto-Pay enabled – Use a Payment Run to automatically net the invoices.
• Auto-Pay disabled – Create a manual $0 payment and apply both the positive and negative invoices.

Enable Auto-Pay

1. In the left navigation menu, click Setup > Settings. The Company Settings page is displayed.
   
2. In the Customer section, turn on the Auto-Pay toggle.

3. Click Save.

   Note: When Auto-Pay is enabled, customers are included in payment runs, allowing Ordway to automatically apply negative invoices against positive invoices during payment processing.

Create a Payment Run (Auto-Pay Enabled Customers)

This procedure applies only to customers with Auto-Pay enabled. During the payment run, Ordway automatically applies negative invoices against positive invoices for the same customer when both invoices are included in the payment run.

Prerequisites

• The customer has Auto-Pay enabled.
• Both the positive and negative invoices are Posted.
• Both invoices are eligible for the same payment run.

Steps

1. In the left navigation menu, click Operations > Payment Runs. The Payment Runs page is displayed.
   
2. Click + ADD.  The Add Payment Run page is displayed.
   

3. In the Target Invoice Due Date field, select the invoice due date to include in the payment run. 
   Only invoices due on or before the selected date are considered.

4. Under Filter for Due Invoices, apply filters to identify the invoices to process.
   • Use the Customer filter to limit the payment run to a specific customer, if required.
   • Add additional filters as needed.

5. Verify the Invoices count.
   The invoice count includes only customers with Auto-Pay enabled and posted invoices with an outstanding balance.

6. Under Processing Options, configure the appropriate settings:

   Option	Description
   Create one payment per customer	Creates a single payment that is applied across all eligible invoices for the customer.
   Create refunds for negative invoices	Creates refunds when the net invoice balance is negative after applying credits.
   Send email on successfully processing payments	Sends a payment confirmation email after successful payment processing.
   Send email when a payment fails	Sends an email notification if payment collection fails.
   Apply payments processing surcharge fee	Applies any configured payment processing surcharge fee to eligible payments.

7. Click Save to create the payment run. 
   Ordway creates the payment run and displays the Payment Run Details page.
   

8. The Payment Run Details page includes the following sections:

• Basic Information: Displays the summary of the payment run, including:

  Field	Description
  Payment Run ID	Unique identifier assigned to the payment run.
  Status	Indicates the current status of the payment run (for example, Completed).
  Executed On	Date the payment run was executed.
  Target Invoice Due Date	Due date used to identify eligible invoices.
  Succeeded Operations	Number of payment or refund operations completed successfully.
  Value of Payments Processed	Total amount successfully collected during the payment run.
  Value of Refunds Processed	Total refund amount processed for negative invoices.
  Number of Errors	Number of payment or refund operations that failed.
  Value of Payments Errors	Total value of failed payment transactions.
  Value of Refunds Errors	Total value of failed refund transactions.

• Filter Criteria: Displays the filters used to create the payment run, such as:

  • Customer

  • Invoice Due Date

  • Any additional filters applied

• Processing Options: Displays the processing options that were selected when the payment run was created.
• Note: If the payment run includes both a positive and a negative invoice for the same Auto-Pay enabled customer, Ordway automatically applies the negative invoice against the positive invoice before collecting payment or generating a refund, based on the resulting net balance.
• Verify the Payment Run Results: The All Payments section displays the payments created by the payment run.

  • If payment records were successfully created, each payment is listed with the following information:

    Column	Description
    Payment ID	Unique identifier of the payment.
    Customer	Customer associated with the payment.
    Payment Date	Date the payment was created or processed.
    Payment Method	Payment method used for the transaction.
    Amount	Total payment amount.
    Balance	Remaining unapplied payment balance, if any.
    Status	Current payment status (for example, Completed, Pending, or Failed).

• If no payments are created, the All Payments section displays No rows. This can occur when:

  • The payment run contains only negative invoices that result in refunds.
  • No eligible invoices match the selected filter criteria.
  • The payment run completes without generating any payment transactions.

Apply a Negative Invoice to a Positive Invoice (Auto-Pay Disabled)

This procedure applies to customers who do not have Auto-Pay enabled.

Prerequisites

• The customer has Auto-Pay disabled. 
• Both the positive and negative invoices are Posted. 
• Both invoices belong to the same customer. 
• The selected customer account contains both positive and negative invoices.

Steps

1. In the left navigation menu, click Operations > Payments. The Payments page is displayed.
2. Click + ADD to create a new payment. The New Payment page is displayed. 
   
3. Select the Payment Date.
4. Select the Customer Account that contains both positive and negative invoices.
5. Select the Payment Type and Payment Method.
6. Verify the Currency.
7. In the Payment Amount field, enter 0.

8. In the Apply to Invoices section:
   Note: The Apply to Invoices section displays both positive and negative invoices only if the selected customer account contains both invoice types.
   

   • Enter the positive invoice amount in the Amount to Apply field for the positive invoice.
   • Enter the negative invoice amount in the Amount to Apply field for the negative invoice.

   For example:

   Invoice	Total	Amount to Apply
   Positive Invoice	$100.00	100.00
   Negative Invoice	-$100.00	-100.00

9. Verify that the total payment amount remains $0.00.
10. Click Save.

Result

Ordway creates a manual $0.00 payment and applies it to both the positive and negative invoices. The invoices are netted against each other without collecting a payment from or issuing a refund to the customer.