How do I handle customer overpayments?

Legacy KB ID: 2084

Question

How do I handle customer overpayments?

Answer

When you have a customer that has overpaid an invoice, Reckon Accounts will automatically keep track of the overpaid amount.

Here's the best way to handle the overpayment.

Creating the overpayment

1) From the Activities menu, choose Receive Payments.

2) Select the Customer: job from the drop-down list.

3) Enter the amount being received. Reckon Accounts enters the amount received in the Total to Apply field, enters the payment of the invoice, and enters the amount of the overpayment in the Unapplied Amount field.

4) (Optional) Click Print Credit Memo to print a credit memo for the unapplied amount.

5) Click OK in the Receive Payments window and in the message that Reckon Accounts displays.

Applying the overpayment

There are two ways to handle the overpayment. You can wait until you have another invoice to apply it to, or you can issue a refund cheque for the overpayment amount in the Create Credit Memo/Refund window. To apply the overpayment to an invoice:

1) From the Activities menu, chose Receive Payments.

2) Choose the Customer:job from the drop-down list.

3) DO NOT type in any amount in the amount field. Type in an amount only if you are receiving an additional payment at the same time.

4) Select the "Apply Existing Credits?" checkbox.

5) Click OK.

The existing credit is applied automatically to the outstanding invoice. If you do not use all of the existing credit, there is an unapplied amount which remains as an existing credit.

To issue a refund cheque for the overpayment

1) From the Activities menu, choose Create Credit Memos/Refunds.

2) Click the Refund button, which is located on the right-hand side of the Create Credit Memo/Refund window. DO NOT fill out the Credit Memo.

3) In the Write Cheque window, choose the Customer:job from the drop-down list in the "Pay to the Order of" field.

4) Enter the amount of the overpayment in the dollar amount field.

5) Click OK.

6) At the Create Credit Memo/Refund window, click Cancel.

You now need to link the refund cheque to the existing credit.

To apply the refund cheque to the overpayment:

1) From the Activities menu, choose Receive Payments.

2) Choose the Customer:job for which you just wrote the refund cheque. You'll see the amount of the credit included in the Existing Credits field and the refund cheque in the bottom section of the window.

3) Select the "Apply Existing Credits?" checkbox. Make sure that the refund cheque line is checked in the bottom section of the window.

4) Click OK. The refund cheque is now linked to the credit memo you wrote or this customer.


Need more help?

Ask the Reckon Community at: https://community.reckon.com/categories/reckonaccounts

Or Log a Support Ticket: https://www.reckon.com/au/support/

How did we do?

Reckon Accounts Desktop: How do I create items for inventory?

How to submit the TPAR file to the ATO

Related Articles

Refund customer overpayment
Handling overpayments from customers
Supplier Overpayment
Powered by HelpDocs (opens in a new tab)

Powered by HelpDocs (opens in a new tab)