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A
ametz1201
March 4, 2024
Question

customer overpayment

  • March 4, 2024
  • 2 replies
  • 0 views

Hello,

I received a check from a customer and it's is an overpayment of $59.69.  Because I revised the invoice already and took the sales tax off and resent the revised invoice to their a/r.  So I know before on one occasion when they did this before they saw they paid an invoice with sales tax on it, on one of their next checks they made a credit memo in their system and took a credit in the amount of the sales tax.  But before when i applied that payment to the invoice and it had sales tax on it and I was unaware of this situation.  But since I am now and I revised their invoice and took the sales tax off since I now know they are exempt from sales tax on all their invoices, when I apply this over payment to the invoice it says at the bottom this transaction will create an additional credit in the amount of $59.69.

So my question is if I go through with applying the payment to the invoice and it's an overpayment with it make a credit on the customer's account that I can match the credit on their account when I receive another payment from them paying other open invoices and also having the credit memo of their overpayment from the previous payment?

Sorry if I confused you.  I hope you got the point of it..Thank you 

2 replies

S
Shania_C
March 4, 2024

Hi there, @ametz1201.

 

Allow me to share some information about your concern about customer overpayment in QuickBooks Online.

 

If you apply a payment to an invoice in QuickBooks and the payment amount exceeds the invoice amount, a credit memo will automatically be created and applied to the customer's account. This credit can then be used to pay for any future invoices they have with your business. So, when the customer makes another payment towards their open invoice(s), you can match the credit memo with the payment to ensure that the correct amount is applied to their account.

 

Process payments for invoices

 

If you send a customer an invoice but they wish to pay in person, you have a few options. Ask them to follow the link in the email and finish paying for the invoice online. Or process the payment for them and match it to their existing invoice:

 

Here's a step on about process of receiving payment and applying credit memos to invoices:

 

  1. Select + New.
  2. Select Receive payment.
  3. Enter the customer name and payment date.
  4. In the Outstanding Transactions section, select an open invoice to apply the payment. To take a partial payment, change what's in the PAYMENT  field.
  5. From the Payment method dropdown, select Credit Card.
  6. Select Enter credit card details.
  7. Enter the credit card info or select Swipe Card.
  8. Optional: To save this customer's credit card, select Use this credit card in the future.
  9. Select Save or Use this info.
  10. Select Got it, then select Save and Close or Save and new

 

Furthermore, I also recommended that you learn about categorizing and matching bank transactions for future reference. This will help you keep your books organized and accurate.

 

I'm only a comment away if you have any questions throughout the process. Take care and enjoy your weekend!

A
ametz1201Author
March 5, 2024

ok, I was wondering if the credit will be on the customer's account to use/apply when I receive their next check when they are going to take the credit.  So when applying that payment (the next check)  I should be able to apply their next payment for the invoices they are paying and check the credit on their account that will be on their check?

S
Sherrie_F
March 5, 2024

Hello there, @ametz1201.

 

Allow me to chime into this thread and get this into detail.

 

Yes, if there's an overpayment, it will automatically create a credit on your customer's profile, which is available to apply to a future open invoice.

 

You can also seek assistance from your accountant if you need further guidance about managing overpayment in your QuickBooks Online account. If you don't have one, you can use our Find-an-Accountant tool to look for an expert near you.

 

Once everything's settled, here's an article you can browse through for you to be able to use bank rules to automatically categorize transactions from your bank: Set up bank rules to categorize online banking transactions in QuickBooks Online (QBO).

 

If you need anything else, feel free to drop a comment below. Please know that I'm just one post away. Have a good one.

Rainflurry
Rainflurry
March 6, 2024

@ametz1201 

 

"So my question is if I go through with applying the payment to the invoice and it's an overpayment with it make a credit on the customer's account that I can match the credit on their account when I receive another payment from them paying other open invoices and also having the credit memo of their overpayment from the previous payment?"

 

Yes.  The credit will be available to apply to a future open invoice. 

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