Invoice - Apportion payment to specific line items
Apportion payment to specific line items on invoices. This would allow you to choose where to apply the payment, making it possible to have invoices with multiple payments to have the sales taxed/no sale tax payment correctly and just not proportionally.
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Kirrily Drew commented
One of our regular clients is overseas and has to pay withholding tax on some line items (e.g. conference talk honorarium) but not others (e.g. train fares). We do not know the withholding tax amounts in advance, so we invoice them for the full amount. They will send us a part-payment which should fully pay the non-taxable items and the remainder of the payment should be credited to the taxable items. It's not possible to determine which line items the payment should be credited to at the moment, meaning I need to create a workaround. It would be better if it could all be done easily.
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Mark Bartter commented
Here's another scenario that would benefit from being able to apply a part payment to specific invoice lines:
A two-line invoice includes a hire fee (income) amount and a refundable security/booking deposit amount (liability).
The deposit amount only is paid a few months early to secure a booking.
Xero apportions a part payment across all invoice lines which requires some manual journal jiggery-pokery at period end to put the full amount of the deposit into the liability account. -
AdminXero Team (Admin, Xero) commented
Ability to reconcile invoices & bills where they are part-paid that’s written within the line items.
Purpose: To make users easier to reconcile part payment that was made by the customers/suppliers.