How do I return an overpayment to a customer?

Q: We have a customer who had a cashier’s check before knowing the amount of their invoice.  This created an overpayment.  We paid the customer change from cash, and deposited check in bank.  Can you provide me some options for accounting for this?

In this example a customer invoice was created for $224.00.

The customer showed up as in your example with a money order for $300.00, although it could be a check that they mailed in at a higher amount.

Enter the Receipt against the Invoice as $300.00, placing the $300.00 in the upper Amount field first, then enter 300 into the Pay column as shown below.

Click OK and the Overpayment window opens. Click Overpay

This will clear the invoice AR and deposit your funds received in your bank. Or in accounting Debit the Bank $300, Credit the AR $224.0 amd lodge the $76.00 against the customer record.

When you decide to repay the customer or as in your case just give them $76.00 cash, go to the Adjustments under the Command menu at the top of the screen and select Return Cheque to Debtor.

The Return Cheque to Debtor window opens, highlight the overpayment you want to return, as you could have other overpayments, and click Continue.

The Return Cheque Window opens, Assign a Cheque No. [e.g. 1234 below], verify the Bank account & transaction date, then click OK.

MoneyWorks will then create a posted Payment. Crediting the Bank Account and Debiting the negative AR overpayment that MoneyWorks originally recorded.

If it was a check you would print it, if cash just select the Cash Payment method. Although in that case you would probably be crediting the Petty Cash bank account that use to track cash on hand.

Note: if you decide to leave the overpayment on the customer’s rcord, you can apply it to their next invoice as a partial payment.

For more information about MoneyWorks Support in Canada, in the USA, or in the UK contact www.moneyworkssupport.wordpress.com

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s