Short answer
If the bank movement exists but the customer or supplier balance remains open, check whether the bank line has been allocated through settlement matching rather than coded as a new expense or income transaction.
What to check first
Why this happens
A bank movement and a subledger settlement are two sides of the same event. Coding the bank line to an expense or income account does not necessarily clear an existing debtor or creditor because it creates a new accounting entry rather than allocating payment to the open item.
Steps to resolve it
- Open settlement matching for the relevant customer or supplier.
- Select the bank payment or receipt and the outstanding invoice/opening balance.
- Allocate the amount, including partial or multi-item allocation where required.
- Treat any excess as an overpayment/on-account amount rather than forcing the invoice to a different value.
- Review the customer/supplier control and bank reconciliation after saving.
What to avoid
Frequently asked questions
Can one payment clear several invoices?
Yes, where the payment genuinely relates to multiple open items, use multi-item settlement allocation.
What if the payment is larger than the invoice?
Allocate the amount supported by the invoice and treat the remainder as an overpayment/on-account balance.
Can I clear an opening supplier balance with a later bank payment?
Yes. Use the brought-forward supplier/customer settlement process so the opening subledger and control balance clear together.