EQd: Transferring On-Account Funds Between Clients Using GL Write-Offs to Pay an Invoice for Another Client

1. Step 1: Write off receipt from the original client

Go to Receipts Editing > Receipts Editing.

2. Click "Selections" (lower right corner).

3. Enter the client with the on-account funds.

• Check the remaining 3 boxes:

  • All dates

  • All checks

  • Open Receipts Only

• Click Done.

4. Edit the receipt.

5. Select W/o rec > click Add.

6. Assign a GL account> Click "Save"

Important: The GL account used for both write-offs is typically an internal clearing or suspense account (such as a Miscellaneous A/R offset). Please confirm with your accountant which GL account is appropriate for your setup.

7. Click "Exit"

8. Go to Receipt Notes (bottom left) > enter the explanation:

Note Added: This is critical—you're documenting why you’re doing this. It tells anyone reviewing the books what happened.

9. Add note: "Funds used for client x on invoice #xxxx> Save

10. Click "Exit"

11. Click "Exit"

12. #### Step 2: Apply amount to the receiving client's invoice.

Go to Receipts Editing > Receipts Editing.

13. Click "Add" enter the client receiving the funds.

14. - Set:

• Rcvd Amount: $0.00

• Date: Today’s date

• GL Period: Current period

• Highlight the invoice > select W/o inv.

15. Use the default GL account (same as used in receipt write-off).

Click Save.

16. Go to Receipt Notes > enter the explanation:

17. Add note: "On-Account receipt from client x received xx/xx/xxxx> Save

Note Added: Again, you explain that the funds came from the other client and when they were received.

18. Click "Exit"

19. Click "Exit"

Tip: Note:
This process is used to reallocate on-account funds from one client to cover invoices for another when the system does not support direct cross-client application. By writing off the funds from the original client and creating a $0.00 receipt with a write-off to the receiving client, the transaction is balanced using the same general ledger (GL) account.

This method ensures that:

• The original client’s balance accurately reflects the removal of the unused funds.

• The receiving client’s invoice is marked as satisfied without affecting actual cash or bank balances.

• The general ledger remains balanced, with no net financial impact.

• A clear audit trail is maintained through receipt notes explaining the transaction.

Overall, this approach keeps client accounts accurate while maintaining financial integrity in the system.