We have 3 invoices where the payment was applied incorrectly last month.

The early payment discount did not apply automatically, so the first 2 invoices had the full amount applied to them, and the third one had those amounts left outstanding as a balance owing.

I didn't want to reverse the payment because last month was already closed.

So, I created an adjustment entry to

• debit the sales discount expense account and credit receivables for the first 2 invoices
• credit the sales discount expense account and debit receivables for the 3rd invoice
• the net adjustment was $0.00

I assumed this would just reduce the amount owing on the 3rd invoice and increase the amount owing on the 1st and 2nd, which we could just clear against each other, but the adjustments on the first 2 invoices are not posting?

Should I not be able to adjust A/R invoices that are already fully paid - the manual suggests I can? Or did I do something else wrong? The period is open.

I am just getting an error batch, saying the applied amount exceeds the current balance.