Invoice overpayment

Question

Hi everyone,

One of our customers overpaid his invoice. We will send him the difference back, but can someone tell me how to reconcile these transactions, please?

Thank you,

Petra

Doreen_P · Answer

Hey @pezele,

To sort out the overpayment, you can record the payment for the full amount you’ve received. This will automatically create a credit for the extra bit. You can then refund that credit back to your customer or apply it to another invoice if needed. Make sure to check this link for more info. Once that’s done, reconciling becomes a breeze. Match the payment and refund to your bank feed transactions to keep everything balanced and tidy.

Cheers,

Doreen

ClientsNeeds · Answer

Hi There,

There are 2 ways to do this:

* A really simple way would just to do a received money and code both transactions to sales with GST, as the amount is in and out the end of day affect will be NIL.
* If you want this recorded for future records and to do it the right way, go to the bank feeds and instead of allocate choose "match payment", choose your customer, tick "Show closed invoices", then allocate the payment to the latest invoices. Now that you have a credit on the account and are ready to pay this refund back go to sales - Sales returns and credits - Click on Refund and record the payment you can then match this off with the bank feeds later on.

http://www.clientsneeds.com.au