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Anonymous
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How to handle customer overpayments

I have 2 customers who clearly don't use Quickbooks!

 

These customers have overpaid me several times this year for invoices, and then of course have been deducting money from other invoices to adjust the balance.

 

Whilst the accounts are all fine, trying to reconcile this on Quickbooks Online is causing me a headache trying to imagine a way to do it that will keep my accountant happy!

 

Any advice gratefully received. I don't know where to start!

5 REPLIES 5
Anonymous
Not applicable

Re: How to handle customer overpayments

Hi Whizzkid,

That sounds very frustrating, however, I can help you with this. Always remember, QuickBooks Online should be a reflection of life, so if a customer overpays you, you want to record that payment exactly as it occurs. Here's an example below:

 

If you've sent a customer an invoice for £100, and they've paid you £120, simply record the payment in full as £120. This will credit the customer account with the £20 overpayment and show as an Unapplied credit, until their next invoice is created, and you can then apply the credit against the new invoice.

 

If you use this process, you'll find you can reconcile as your QuickBooks transactions are matching your bank accounts statement and your customer balances will reflect how much they have overpaid.

 

Let me know if you have any further queries.

Level 7

Re: How to handle customer overpayments

Hey @Anonymous - welcome to QB Community! I hope you find @Anonymous's response helpful.

 

Not one but two customers who regularly overpay. Inconvenient from an accounting perspective to be sure, but maybe not such a terrible problem to have. Definitely not QuickBooks users :smileywink:

Anonymous
Not applicable

Re: How to handle customer overpayments

Thanks Gill

 

What's the best way to do this when reconciling it from auto-imported payments from my bank?

If I try to match the overpayment to the invoice then I must resolve the difference somehow. If I mark the invoice as paid and then go to banking to reconcile the payment I cannot find a way to match that (over)payment with any other Quickbooks entries that I can see.

 

I am sure it is easy, and I a know I am going to be using it a lot! They are hopeless!

Anonymous
Not applicable

Re: How to handle customer overpayments

Such quick and helpful responses. What a great community.

Level 7

Re: How to handle customer overpayments

Great to have you here, @Anonymous (and well done @Anonymous)! We're striving to build a vibrant, living community where small-business owners/self employed can talk shop. Got something else on your mind today? Business strategy, building your customer base, dealing with suppliers? Head on over to our Business Discussions and tell us about it!