Match one customer payment to several invoices

The bank shows one $1,000 deposit. The customer has three invoices outstanding and a credit on the account. Selecting invoices until the screen says zero may settle the wrong debts. Get the remittance first, then build an allocation you can explain.

This guide covers a single customer's direct payment. A payment-platform settlement combining many customers, fees and refunds needs the platform's settlement report and a different reconciliation.

Gather the documents that explain the deposit

Collect the bank reference, customer remittance, open-invoice list and available credit notes. Confirm that the payer and invoice customer are the right legal entity. A group of related businesses may share a trading name without sharing an account balance.

Check that the invoices and credit note already exist and haven't been paid or used elsewhere. The tax invoice guide explains the source documents; this task concerns allocating the money after those documents are in the books.

Allocate $1,000 across three invoices and a credit

In this fictional example, the customer owes $550, $330 and $220. A valid $55 credit note applies to the third invoice. The remittance explains $550 against the first, $330 against the second and $120 against the third, but gives no reason for leaving $45 unpaid.

Document	Original amount	Credit applied	Cash allocated	Still owing
INV-401	$550	$0	$550	$0
INV-402	$330	$0	$330	$0
INV-403	$220	$55 from CN-18	$120	$45
Totals	$1,100	$55	$1,000	$45

Two checks: cash allocations $550 + $330 + $120 = the $1,000 bank deposit. Customer debt $1,100 − $55 credit − $1,000 payment = $45 still owing.

Original ASBG remittance worksheet. CN-18 is an existing, supported credit. The separate $45 shortfall is not an agreed discount or write-off.

Record the $55 credit against INV-403 once. Then record the cash allocation so INV-401 and INV-402 close, while INV-403 remains partly unpaid. Attach the remittance to the receipt or linked records.

Use matching controls without inventing an adjustment

MYOB's bank-matching guidance allows a bank line to match multiple records and requires the matching difference to be zero. That is a control on the selected cash transactions, not a direction to erase every remaining invoice balance.

Depending on your product and current screen, record the invoice payments first and match their combined amount, or use the supported invoice-allocation workflow from the bank line. Verify that it creates the intended partial payment. Don't allocate the deposit to a general sales category when the original invoices already recorded those sales.

If your selected records total $1,045 against a $1,000 deposit, return to the remittance. In this example the solution is a $120 partial payment on the last invoice. Creating a $45 “rounding adjustment” would incorrectly close a debt whose status hasn't been settled.

Ask a specific question about the short payment

Send the customer the relevant invoice number and calculation: “INV-403 was $220, less credit CN-18 of $55. We received $120 against it, leaving $45. Please confirm the reason for the difference.” This makes it easier to distinguish a disputed item, an agreed discount that lacks documentation, a payment still to come or a simple mistake.

Keep the $45 open while you wait. If a valid price adjustment is agreed, record the authorised credit with appropriate tax treatment. If money arrives later, apply that receipt to the balance. Don't backfill consent or infer a discount from a payment amount.

If the customer actually paid more than the invoices require, follow the overpayment guide instead.

Close the bank match and check the customer statement

The bank can be fully reconciled while the customer still owes $45. Confirm that the deposit is matched once, CN-18 is fully used once and the open-invoice report shows only the remaining balance. Keep the exception and follow-up date in your bookkeeping routine.

If a previous match closed the wrong invoices, preserve the payment record and remittance before an authorised correction. Have the agent review changes affecting a closed period or lodged business activity statement (BAS).

Key takeaways

• Reconcile cash received and customer debt as two separate totals.
• Use supported invoice references and credits, not a combination that merely fits.
• Leave a short payment visible until its reason is resolved.

Where to get help

Use the current software matching instructions linked above. Give your bookkeeper the remittance and allocation table if the payment won't match. Continue through bookkeeping and BAS for other transaction fixes.