Introduction
This topic will teach you how to handle a case where the customer over pays an invoice. In other words, they send you more money than they owe you for a certain sale.
Step-By-Step
This is a multi-step process. The first thing you need to do is enter the sale.
- Enter the invoice as you would normally would. Be sure that the sale is for the correct amount.
The next step is to write the customer a check for the difference.
- Click Banking | Write Checks.
- Click the Checks button and select New. The check form should open.
- Select the customer that over paid their invoice.
- In the Amount field, enter the amount of the over payment.
- Using the Memo field, please enter a memo describing what you are doing (yes this is boring but we highly recommend it).
- In the Expenses tab, select your accounts receivable account. You must select an A/R account! This is a very import step!
- In the Customer/Job column, select the correct customer (the one that over paid you). This is a very important step!
- After you double check your work, click the Save & Close button.
Now you need to receive the payment from the customer.
- Click Customer | Receive Payments.
- Click the Payment button and select New. The payment form should open.
- In the Customer field, select the correct customer (the one that over paid you).
- Select the payment method and add other information as needed.
- Using the Memo field, please enter a memo describing what you are doing (highly recommended).
- In the Amount field, enter the amount of the check the customer gave you (this is the check that was too much).
- In the Applied To area (at the bottom of the form), select BOTH the invoice that was over paid and the check that you wrote to cover the over payment. Both of these items should now have a black [X] next to them.
- After you double check your work, click the Save & Close button.
- Mail the check to the customer.
Tips
- If they have over paid you a very small amount (like a sales tax over payment), you may wish to consider adjusting the invoice up and avoid this process completely.
Related Content
Write Checks to Pay Bills and Expenses (how to create and edit)