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I received a check from a customer and it's is an overpayment of $59.69. Because I revised the invoice already and took the sales tax off and resent the revised invoice to their a/r. So I know before on one occasion when they did this before they saw they paid an invoice with sales tax on it, on one of their next checks they made a credit memo in their system and took a credit in the amount of the sales tax. But before when i applied that payment to the invoice and it had sales tax on it and I was unaware of this situation. But since I am now and I revised their invoice and took the sales tax off since I now know they are exempt from sales tax on all their invoices, when I apply this over payment to the invoice it says at the bottom this transaction will create an additional credit in the amount of $59.69.
So my question is if I go through with applying the payment to the invoice and it's an overpayment with it make a credit on the customer's account that I can match the credit on their account when I receive another payment from them paying other open invoices and also having the credit memo of their overpayment from the previous payment?
Sorry if I confused you. I hope you got the point of it..Thank you
Hi there, @ametz1201.
Allow me to share some information about your concern about customer overpayment in QuickBooks Online.
If you apply a payment to an invoice in QuickBooks and the payment amount exceeds the invoice amount, a credit memo will automatically be created and applied to the customer's account. This credit can then be used to pay for any future invoices they have with your business. So, when the customer makes another payment towards their open invoice(s), you can match the credit memo with the payment to ensure that the correct amount is applied to their account.
Process payments for invoices
If you send a customer an invoice but they wish to pay in person, you have a few options. Ask them to follow the link in the email and finish paying for the invoice online. Or process the payment for them and match it to their existing invoice:
Here's a step on about process of receiving payment and applying credit memos to invoices:
Furthermore, I also recommended that you learn about categorizing and matching bank transactions for future reference. This will help you keep your books organized and accurate.
I'm only a comment away if you have any questions throughout the process. Take care and enjoy your weekend!
ok, I was wondering if the credit will be on the customer's account to use/apply when I receive their next check when they are going to take the credit. So when applying that payment (the next check) I should be able to apply their next payment for the invoices they are paying and check the credit on their account that will be on their check?
Hello there, @ametz1201.
Allow me to chime into this thread and get this into detail.
Yes, if there's an overpayment, it will automatically create a credit on your customer's profile, which is available to apply to a future open invoice.
You can also seek assistance from your accountant if you need further guidance about managing overpayment in your QuickBooks Online account. If you don't have one, you can use our Find-an-Accountant tool to look for an expert near you.
Once everything's settled, here's an article you can browse through for you to be able to use bank rules to automatically categorize transactions from your bank: Set up bank rules to categorize online banking transactions in QuickBooks Online (QBO).
If you need anything else, feel free to drop a comment below. Please know that I'm just one post away. Have a good one.
I don't want to write if off because I think they will take the amount as a credit on one of their next checks. I have seen them do it once before. Also I sent them revised invoice and I guess they already had the original invoice in the payment process. So I believe they will use the credit with one of their future payments. So I was just wondering if the credit that the overpayment will make on their account will be available to choose when the time comes that I receive a check from them paying other open invoices and using that credit.
Thanks for clarifying your product, @ametz1201. This helps me to ensure that I can provide accurate steps on how to apply your credits to invoices in QuickBooks Online (QBO).
In QBO, you can choose what credit/s to apply to specific invoices that you'll be paying. Just navigate to the Receive Payment window, then choose a customer from the dropdown. You will then see the invoices under the Outstanding Transactions section and the existing credits under the Credits section.
You'll want to follow these steps to proceed:
For more information about this process, please refer to this article: Create and apply credit memos or delayed credits in QuickBooks Online. This resource also includes steps on how you can enable the auto-apply credits to customers' balances or open invoices.
Please don't hesitate to reply to this thread should you need additional assistance applying credit to invoices. Stay safe.
"So my question is if I go through with applying the payment to the invoice and it's an overpayment with it make a credit on the customer's account that I can match the credit on their account when I receive another payment from them paying other open invoices and also having the credit memo of their overpayment from the previous payment?"
Yes. The credit will be available to apply to a future open invoice.
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