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Next, enter how much she paid—in this case, let’s say it was $22,000 via Venmo. It's essential to decide on how to apply this payment against the invoices. Typically, the system will auto apply payments to final invoices, but if you need to allocate the funds differently, opt for custom apply. This lets you specify which invoice gets the funds.
Applying Payments to Invoices
Once you switch to custom apply, you can easily allocate the $22,000 payment to the desired invoices. If you have an older invoice that needs to be addressed, such as one that is uncollectable, this is the right moment to make that adjustment. Simply mark that old invoice as uncollectable, which helps in managing your accounts without including outdated records.