Customer overpayment to credit

I'm glad you joined us here and asked this banking-related question in the forum, PolvarthMatt. I have experienced resolving situations where downloaded transactions do not match invoices, so I know what's likely causing the issue here.

Not to worry - I'll share the troubleshooting steps to ensure the downloaded payment gets matched up properly with the pending invoice.

To begin, please know that the system will look for a transaction with the same amount when looking for a match. 

This is why you're unable to match the downloaded payment to the pending invoice because QBO searches for a transaction with the identical amount when trying to find a match. Since the imported payment amount exceeds the invoice balance, it does not recognize them as a match.

However, you can use the Resolve Difference function to manually associate the payment with the invoice. Then, select the Accounts Receivable or Debtors account in the Add resolving transactions section so it will be recorded as a credit and can be applied to future invoices.

Follow these steps on how to do this:

1. Go back to the For review tab and click the downloaded payment.
2. Select the Find match radio button.
3. Look for the invoice and check the box before it.
4. Proceed to the Resolve section and slide the bar to the right. Then, scroll down a little bit.
5. In the Add resolving transactions section, select the Accounts Receivable or Debtors account under the Category column so the overpayment is recorded as a credit.
6. Enter all other details and click Save.

Using Resolve Difference allows you to manually match the payment to the invoice, despite the amount differences.

Keep in mind that it will also create a credit in your customer's account. You can use this article as a guide on how to apply the credit to future invoices: Handle A Customer Credit Or Overpayment In QuickBooks Online.

Just in case you need more guidance when working with your baking transactions, I'd also like to share these articles with you:

• Find Missing Bank Transactions in QuickBooks Online
• Unmatch Downloaded Bank Transactions Or Move Them To Another Account

Please don't hesitate to come back to the QuickBooks Community in the future if you need any help with bank feeds, downloaded transactions, or anything else related to managing your business finances. There are community experts available 24/7 to provide assistance and guidance whenever you have questions for us, PolvarthMatt. 

Thank-you jenop2, that's great, it almost resolves it for me....

The one issue being that there is no "Accounts Receivable" option under category for "Add resolving transaction". Presumably I should "Add new" and create this, possibly as a Current Liability? Will that work? Or is there an equivalent option built in?

Matt

Hi there, Matt. Allow me to help you determine why you're unable to see the accounts receivable.

The Accounts Receivable in the system may have been renamed in the past. Before proceeding with my colleague's recommended process, let's first confirm the current name of the accounts receivable by searching for it in the Chart of Accounts. Here's how:

1. Click on the Gear icon, then select Chart of Accounts.
2. Look for an account with an Account type of Income and Detail Type of Sales and Product.
3. Once found, that's your Accounts Receivable in the system that you'll use as the Category for Add resolving transaction. 

Please see the screenshot for visual reference:

Another option, aside from resolving the difference, is to receive the payment for the exact amount received and then match the bank transaction with the payment.

You can also reconcile your accounts so they always match your bank and credit card statements.

Fill me in if you have more queries about handling your customer payments. I'd be pleased to help you further. Take care.

Thank-you SirielJeaB, appreciate it.

One more thing (sorry, I'm being a bit thick...).

I have today had to issue another invoice to this customer, for which their outstanding credit more than covers the amount. I have "Received payment" however cannot see how I can associate this invoice with the credit. I'm sure I'm missing something obvious - can you please direct?

ta, Matt

Hi Matt, the credit should automatically appear under Credits on the Receive payment screen where you can tick to apply to the invoice payment. If you don't see this here, please begin a chat so that we can set up a secure screen-share to guide you further.