How This Happens
Initial Invoice Creation and Payment
An invoice is sent to a client with a certain percentage of sales tax included. The customer pays the full amount — which includes the original tax calculation — and the item is marked as “fully paid.”
Tax Rates are Updated
Later, the sales tax rate is updated for the item.
This causes the system to recalculate the total due on the original invoice.
Payment No Longer Covers Total
The original payment amount, although correct at the time, is no longer sufficient to cover the new, higher total due. As a result, the system flags the item as “partially paid” even though no additional transaction has occurred.
Next steps
To be able to mark the item as fully paid, first, ensure that the item currently has the correct amount of sales tax in the Scope of Work. Once that is confirmed, go to your Invoicing tab, create a new invoice, and choose ‘Add invoice items’>'Project scope'.
Search for the item labeled partially paid. If you have the option to pull more sales tax on to the invoice, that means not enough sales tax has been collected for the item.
Add the remaining balance to an invoice, and submit it to your client for payment. Once the invoice is paid, your item will be marked fully paid.