I know NV2 has the ‘Tools – Apply’ command available to reconcile payments made from customers. That’s great!

Many of our customers, however, holdback 10% of the funds due on the invoices. For this reason, each customer has 2 receivable acccounts on our G/L:

1) The current account
2) The holdback account

Using the ‘Tools – Apply’ command will create a boomerang transaction that posts to the current account.

Is there any way (simple and error proof) to re-direct the boomerang transaction to the holdback account? The purpose of this is for A/R reporting, so that we know that a customer owes us x amount of dollars for current invoices, and xx amount of dollars relating to holdbacks.

The way we do it know is as follows:

A/R Invoice 10,000.

In the bank deposit journal details we post the 2 entries to effect the transaction:

– 9,000 pmt is made by our customer

1) 10,000 to the CURRENT ACCOUNT
2) (1,000)to the HOLDBACK ACCOUNT

-the net amount matches the check amount and the bank deposit book
-we then go to the current A/R account and reconcile the 10,000 manually
-the the 1,000 will show as being receivable in the HOLDBACK account as of that day.

-these type of customers begin aging the holdback portion on the day the payment is made; hence another reason why we are tracking it this way.

Thanks for your help,