Generally, you don't expect customers to show a Negative or Zero balance. This review point displays such customers. This helps you to find out why they have negative or zero balance and take appropriate actions to resolve, wherever required.

There may be genuine reasons why the customer may show a negative balance, such as Advance payment or Credit memo. The purpose here is to look at such customers and review them. It might be possible that you're missing an invoice, or the invoice is recorded under another customer, or there is long overdue credit that was neither adjusted towards invoices nor money paid to the customer.

Zero balance customers appear when the payment or the credit is not applied against the open invoice. For example, if the 'Amy's Bird Sanctuary' customer has an invoice showing an overdue of $400.00 and the credit for $400 is available, then the customer's balance will be zero, but eventually, the invoice will show overdue until the credit is applied.

Such customers will keep on reflecting in the Aged Receivables Review. Hence, it is important to apply such credits to invoices.