Question

Customer Overpayments and How to Create the Credits the Way I Need

Forum|Forum|3 years ago
March 27, 2023
2 replies
0 views

Hello,

So please forgive me if I am bad at explaining this/what I need. I tried calling Quickbooks Online and the solution they had basically put me back to where I started, so they were no help.

Daily, I run the A/R Aging Detail for our company. I use this report to record outstanding amounts from customers (I put these on an external report I created.) I have one overpayment from a customer from March of 2022 and 2 overpayments from customers for sales tax (Also recorded in 2022 - we overcharged the sales tax and credited them the difference of what they paid versus what we should have originally charged.) I am trying to clean up these balances from a prior employee. I need to add the credit for these amounts to the customers accounts while also taking them off the A/R aging detail sheet. Some of these customers don't have their future invoices produced yet, so I don't/can't apply these credits to their future invoices and having the credit memo just sitting in their accounts adds them to the AR aging detail and AR aging summary reports which results in a misleading total of outstanding invoices. (Yes I know I can filter out these negative amounts or whatnot, but that is not what I need/want to do.)

I was trying to create a delayed credit for the credit amounts and add them under the original 2022 dates and then void the original credit memos. When I did this for the sales tax ones, it took the amounts off my AR aging detail report, but I noticed my voided transactions were under sales tax and the new delayed credit wasn't, therefore it changed the 2022 numbers we reported.

Does anyone understand what I am trying to do and can help? I need to be able to keep the numbers we reported in 2022 the same, while also being able to keep these credits on the customers accounts and not show up in my AR aging detail. If they stay on the AR aging detail, they could be on there forever considering some customers only get invoiced every 2 years.

Please help! Let me know if you have anymore questions or need more clarification.

Thank you all for your help 🙂 - Helena

QuickBooks Online

C

Carneil_C

I appreciate you laying out the details of your concern, @H_Morrow310.

Let me further assist you by pointing you in the right direction of support to help sort out your issue with handling your customer's overpayments and credits.

I understand you've already contacted our support, but I recommend contacting them again. They have the tools to have a screen-sharing session with you in a safe environment and further investigate your issue.

Here's how you can reach out to them:

Go to Help (?), then click Contact Us.
Please enter your question and select Let's talk.
Review and choose from the following: Ask the community, Have us call you, or Chat with us.

You can check their support hours from this article so they can address your concerns promptly.

Click the Reply button if you need more help with any QuickBooks-related concerns. Take care and have a pleasant day.

Rainflurry

@H_Morrow310

I need to add the credit for these amounts to the customers accounts while also taking them off the A/R aging detail sheet.

That's the problem and, honestly, a shortcoming of QBO. Those amounts should be able to be listed as liabilities, not as a reduction in A/R (both of which are credit balances) and show as a credit on a customer's account. The problem is that QBO uses A/R exclusively for customer accounts, so you can't have a credit on the customer's account and not have it show on the A/R aging/detail reports. You can move those amounts out of A/R and into liability accounts but that eliminates QBO's ability to apply those credits to future invoices automatically. Therefore, you will need to remember that those credits are available and then apply them manually.

C

Cybersis4u

I read your post and have a similar question. I am fairly new to our company and discovered they had 3% Rebate program last year. They issued credit memos for each rebate - which shows up on the A/R report. I wanted to see if you would share what process you used to move the credits off AR.

Thank you

S

ShyMae

Let me help you move your credits, Cybersis4u.

We can create a rebate income account to move the credits off your accounts receivable. I recommend contacting your accountant to ensure the accuracy of books and for guidance in taking the process. If you don't have one, you can find a professional through this link: https://quickbooks.intuit.com/find-an-accountant/.

To proceed, here's the steps to create an account:

Go to Settings, then select Chart of accounts.
Click New and choose Income
From the Save account under column, select Income.
Type in Rebate Income Account in the Account name section.
Once done, hit Save.

Next, we can create a rebate item in the product and services tab. Select the Service type and choose the Rebate Income Account we've created. Once done, create an invoice and use the rebate item.

Lastly, link the invoices and credit memo by creating a receive payment.

Go to + New, then select Receive Payment.
From the Customer dropdown, choose your customer.
Tick the credit memo and the invoice to link them.
Click Save and close.

Additionally, you can generate a report of your accounts receivable aging detail, and customize it to display specific accounts or customers.

I'm still all ears if you need further assistance managing your credit memo and accounts receivable. Just tap the reply button below for your response.

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