When entering a payment into Akada, you must apply it to a specific charge. Akada offers several options for this, which we will discuss in this article. But first, why do your payments need to be applied? Basic accounting principles state that for every credit (payment), there must be a debit (charge). Furthermore, a payment does not actually become income until it is applied to a charge. Applying the payment gives you the ability to pair it with the correct charge so that your income reports and income categories, such as tuition or costumes, reflect the correct amounts.
Understanding your account balances can help ensure smooth financial management. Here's a breakdown of how Akada handles payments and charges to maintain accurate balance records.
Applying a Payment:
Once you have entered your payment, you will be directed to the Apply Payment screen, as shown above. Here are a couple of different ways you can apply the payment.
Auto Apply Button - This function will apply the entire payment, starting with the oldest unpaid charge first.
Apply Entire Payment - This option enables you to select the specific charge to which the payment will be applied. As you apply each charge, the payment balance will be updated.
Apply Partial Payment - Using this will allow you to specify a specific amount to apply to a charge. When used, a pop-up will appear giving you the ability to enter the amount you wish to apply. Once you have entered the amount, click the Apply Payment button.
If you notice that an account still displays a balance after payments have been made, it could be due to unapplied payments. To resolve this:
Open the payment in question.
Access the payment options by clicking the purple action menu to the right of the payment.
Select "Apply."
Apply the payment to the correct charge. Following these steps ensures that payments are accurately reflected in your account balance.
Tip: If a customer is paying a single charge, you may find it faster to click the 'Pay Charge' link next to the charge on the customer's transactions screen. When the payment is entered, it will be automatically applied to the corresponding charge, eliminating a step. Additional Tip: Always review your account details after payments to ensure that balances are updated correctly. If discrepancies are found, contact support for immediate assistance.