When making a payment for “Unpaid Purchase” or “Unpaid Sales” invoice, you are usually paying for a “Conversion Balance” type of invoice. But before you can make the payment, it’ll be useful of you first understand what they are.
Conversion Balance Invoice
“Conversion Balance” Invoices are typically invoices created when you migrate your Trial Balance from a different accounting record (read more here). Along with your trial balance, you will also import any outstanding payments both from your customer and to your supplier.
Having said that, the system does not automatically post a journal entry when you migrate. Hence, when making a payment for a Conversion Balance invoice, you might get the following error message.
Once you click on the blue arrow, this is an example of a “Conversion Balance” invoice.
How to fix it?
If you have this type of invoices, and you want to make a payment, you might not be able to do so as there is no double entry behind this migration. Hence, the first thing you need to do is to create a double entry for this and that would allow you to make payment postings already.
(Click on image for larger view)
Once you click that, the journal entry will be created for you and you can now proceed with the payment.