Customer Overpayment

Hi,

I am new to QBO and I am having the same issue.

A customer overpaid for an invoice and said leave the money on his account for future work.

I entered the Cheque payment as £500 received and marked off the invoices (£400) leaving -£100.

On the baking screen I see a match to the payment but I don't know what to do from here.

Should I make a credit note?

The customer screen shows Partial status.

Advise please as I am stuck on this.

Hello there, @Rafiq.

I'll help ensure you'll be able to match the payment on the Banking screen appropriately.

Yes, you have to record a Credit Note apply the over-payment in the future and to match the transactions accordingly.

To enter a credit note:

1. Log in to your QuicBooks Online (QBO) account.
2. Go to the Plus (+) icon.
3. Select Credit Note.
4. Fill out all required fields (including the customer name, date, products/service items, quantities, and amounts).
5. Select Save and close.

To apply the credit note:

1. Go to the Plus (+) icon.
2. Select Receive Payment.
3. Fill in the necessary information.
4. Go to the Credits section and select the Credit Note created.
5. Verify that the total to pay (if any) is correct after applying the Credit Note.
6. Select Save and close.

To learn more about credit note, you can check this article: Enter and apply a credit note or delayed credit.

Let me know if you have any other questions. I'm always available to help!

Hi,

I created the credit note and went to receive payment, there is no outstanding transaction,

Under credits I have Unapplied payment from the previous cheque entry covering 3 invoices and I have a credit note.  Neither of them allows me to enter figures into the amount field.

I am a bit stuck here.

Should I go back and delete the first received payment and do the credit note first?

I'd like to jump in and help you, Rafiq.

You won't need to create a credit note because you already entered an invoice payment amounting to £500. That is already the matching entry to the download bank transaction. Then, this will leave an open credit of -£100 on the customer's account which can be used to pay their future invoices. That should be it and you're done.

What you can do now is delete the credit note, and re-apply the £500 payment to the invoices. Please be sure to select the right bank account in the Deposit to field of that payment transaction.

After re-applying the payment, match the downloaded bank transaction to it. Just click the Match option if the bank transaction already detects the payment. If not, click the bank transaction and choose the Find match. Then, adjust the date range to find the payment.

Please let me know if you have still need help with your entries.

Thanks, I deleted the credit note and marched the payment.

GeorgiaC,

Will this solution work to match old EUR transactions to invoices? 

We are transferring to QB Online from Excel and entering quite a lot of backlog. Lots of Invoices to customers on Continent and payments from them (uploaded transactions). And they did not match on items older than 180 and there is no "find match" on non-GBP transactions.

I have tried this workaround. (send payment to "Debtor" acc and then receive payment to invoice) It looks like it is indeed allowing me to match old EUR incoming payments to invoices, but I am concerned because in "Sales by Customers" Report, the per-Customer income doubles for some reason (i.e I see a list of items sold to a client and the "Deposit" as a separate income item).

Could you please explain how this works?

Hello there, SGI,

The income doubled because of the deposit coming from your bank transactions and the ones you added. Since you already added it manually to match the invoices, I recommend excluding the transactions from your bank. 

Here's how:

1. Click Banking on the left pane.
2. On the Banking page, select the For Review tab.
3. Select the checkboxes of the transactions to exclude.
4. From the Batch actions drop-down, choose Exclude Selected.

I'll be here if you have more questions.