Invoice adjustment showing up as customer credit balance - help?

I had a customer pay me in advance for a portion of a project based on an estimate. When I issued an invoice for the remainder, I entered that payment as an adjustment on the invoice, so that his pre-payments were reflected in the invoice total. He paid the remaining balance and I thought everything was fine.

However, when I created a new invoice for some additional work, Zoho is now telling me this customer has a "credit balance" that, if I desire, I can apply to this invoice. This is not correct! Those adjustments should not have turned into a credit balance. Now I can't figure out how to reverse this, and the customer is showing an unused credit balance that is false.

I tried creating an invoice as an accounting entry for the same amount and then applying the credit balance to it, but of course then Zoho thinks I have receivables that include that amount for the month.

Does anyone have any suggestions on how to fix this, and what to do in the future if a customer sends an advance payment for a project?

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