Good morning - we have over payments on Customer Deposits that we need to reconcile. The orders are either completely billed or closed. Unfortunately, I don't have an invoice to apply the over payments to. How do I apply the over paid Customer Deposit amounts against a journal entry so we can just move it into revenue? I tried creating the journal entry against the same Customer Deposit clearing account, but the Journal Entry doesn't show up as a selection to apply the over payment against in the Customer Deposit. Thanks in advance!

What we typically do is create an invoice record to apply the open customer deposit balance to.

The Journal should debit AR and not customer deposits account.

@Luis Thanks, but the original customer deposit is a different GL account. How does that match up in the background?

When you apply the customer deposit to the journal, it will create a Deposit Application transaction that debits the customer deposit account and credits the AR account. You will end up then with 0 customer deposit and 0 AR and then x amount of revenue from the journal. Or you can just create a dummy invoice if you don’t want to use a journal. Same output though