Customer overpayment should have resulted in a credit note but did not

[Margriet]

I have a customer who owed $204.57

They paid $300 which I entered against the invoice. This should have generated a credit note, but what happened instead is that system considered the overpayment "finance charges" and created an invoice for it.

Do you have an explanation/solution?

[Earl_HD · Accepted solution]

Hi @Margriet 


Thank you so much for the post. To resolve your issue. You'll need to track down the finance charge and delete it, then delete 204.57 payment, then enter the 300 agains the invoice.

Here's a help article on how you can locate and delete finance charge. Finding and Deleting or reversing a finance charge. 

Cheers,
Earl.

[Margriet]

Hi Earl,

Thanks for your quick reply. Deleted everything and re-entered data as previously. This time a credit note was generated as it should have done the first time (there is still not explanation why the finance charge problem occurred at all).

Kind regards,

Margriet

[Earl_HD]

Hi @Margriet 

Thanks for letting us know that your problem is now resolved. 

Finance charge is a penalty from late payments, it does require the late payment settings for it to occur. Additionally, setting up late payments affects new invoices created and not the existing ones.

These help articles have detailed information:

Finance charges

Deleting a transaction


If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
Best regards,
Earl.

[Margriet]

Hi Earl,

That's not really answering my last question, but my problem has been resolved so let's just leave it there.

Kind regards,

Margriet

[Celia_B]

Hi @Margriet 

Thanks for your post. 

The finance charges are amounts added to an outstanding balance as a penalty for late payment. They are added to a customer's statement. The customer pays the cost, The repayment is recorded in the window of Received payment.

However, In your case, When paying an invoice, there are instances when your customer may accidentally overpay or record the payment twice. Mistakes can happen, but you can easily handle the overpaid amounts in several ways. You can apply it to another unpaid invoice, create a credit and refund the payment, or create a credit and use it on a future invoice or write it off. 
 

You can check on this Help Article for more Information:  Customer overpayments and double payments 

Please feel free to post again, I'm happy to assist you further. 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Best Regards, 

Cel

[gavin12345]

Hi @Margriet 

To answer your actual question, when you process a Receive Payment for $200 and the invoice amount is $190, as you tab through the fields MYOB defaults to adding the $10 as a Finance charge to balance the transaction - in other words it assumes the extra is a Finance Charge - often incorrectly! It is up to the user to clear the Finance Charge field and adjust the payment amount. See image below as an example:

If the image is not visible it shows $3000 received and applied to 2 invoices that total $2067.60. The balance $932.40 is prefilled to Finance Charge. If you click Record, the $932.40 is treated as a Finance Charge. 

Regards

Gavin