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r-gibson
Level 1

Applying an overpayment; to a customer with multiple jobs

I have a customer set up with multiple jobs and they over paid on two of these jobs. They finally took the over payment and applied it to the new job/invoice. But I cant figure out how to apply the over payment to the new job. It does show the customers balance is zero but the new job now shows the balance of the overpayment under the job. Any thoughts on how to clear this up.


Attached is a screenshot of what the account looks like now.....

Solved
Best answer December 10, 2018

Best Answers
qbteachmt
Level 15

Applying an overpayment; to a customer with multiple jobs

Open any Payment that was an overpayment = has an amount unapplied. You will see Job as a column, and now you can apply the rest of the payment to open charges.

Please see my screenshot.

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11 Comments 11
qbteachmt
Level 15

Applying an overpayment; to a customer with multiple jobs

Open any Payment that was an overpayment = has an amount unapplied. You will see Job as a column, and now you can apply the rest of the payment to open charges.

Please see my screenshot.

r-gibson
Level 1

Applying an overpayment; to a customer with multiple jobs

Thank you so much for helping me with my issue. Your advise cleared up the issue and I can't thank you enough.
karen11
Level 1

Applying an overpayment; to a customer with multiple jobs

What if the over-payment was in a previous closed month, ie: January 2017, and the customer short-paid the amount of the over-payment on their next payment in February?  How do I use that over-payment towards the short-pay without disrupting the closed month of January?
DDWorks
Level 2

Applying an overpayment; to a customer with multiple jobs

Oh my God. Thank you. I've been having the same problem and this is the easiest solution by far that I've seen. One click and its done. You made my day. :)
Ben-Alexander
Level 2

Applying an overpayment; to a customer with multiple jobs

This only works if you have recorded the original payment against the customer, not the customer:job. If you open a payment recorded against a customer:job, you do not see any other jobs to credit the overpayment against. However, if you record the payment against the customer and not the customer:job, it messes up the A/R reporting. A/R reports will show an amount owing for the job name and an overpayment for the customer.
qbteachmt
Level 15

Applying an overpayment; to a customer with multiple jobs

"What if the over-payment was in a previous closed month, ie: January 2017,"

Then you were carrying meaningless Negative AR all this time?

"and the customer short-paid the amount of the over-payment on their next payment in February?"

Apply their payment now.

"How do I use that over-payment towards the short-pay without disrupting the closed month of January?"

You already have the money. It is time to apply it.


dianek
Level 1

Applying an overpayment; to a customer with multiple jobs

The month the overpayment came in is closed - if i take the overpayment and apply it in "payments" screen it will change our already closed financials.  I need to apply overpayment in current month - how do I do that?
qbteachmt
Level 15

Applying an overpayment; to a customer with multiple jobs

Accepting a Payment for no open charges means you have Unapplied Income on Cash Basis and it should be Applied to something that still makes it Income. Or, you should have used a Prepayment item on an invoice. Leaving negative AR is never a good accounting scenario. If you are accrual basis, the date of the invoices is used; on cash basis, the date of the payment is used. If you are an accrual reporting entity, and you left an overpayment, you left Negative AR; the opposite of AR makes it a Liability. You can clear that for the Prior period from negative AR to positive Liability. It is time to ask your own CPA about how you should be properly handling Negative AR.
qbteachmt
Level 15

Applying an overpayment; to a customer with multiple jobs

"However, if you record the payment against the customer and not the customer:job, it messes up the A/R reporting. A/R reports will show an amount owing for the job name and an overpayment for the customer."

Yes, until you open that payment and Apply it to the Job, which is seen in the image I provided.

If you are carrying that overpayment for any length of time, you really should never carry it as negative AR at all.

AR is an Asset. Negative AR really = Liability to you. Next, you need to find out if it is even Allowed for this entity to carry liability. A Cash Basis Entity would carry this as Income when paid, and applying it later is going to reduce income, later. An Accrual Basis Entity gets to carry it as Liability. A Landlord or law firm with Liability requirements would also carry liability, even though they typically are a Cash Basis entity.

All of which means you do not use Receive Payment when there are no open charges; or, create a Holding process for the overage. Example:

Make an Other Charge type item; link it to liability or to income to meet your Accounting requirements. Use this on an Sales Receipt for the date you are processing a Customer's Prepayment that you required from them. Put it on an Invoice for the date you are processing a payment that will result in an Overpaid condition. The goal is to Not let anything create negative AR.

Now that item can be used later, on a Credit Memo, to apply to any invoice. That even means the First payment to you is Job A, but later the Customer asks you to apply it to Job B = create a Credit Memo on that later date, for Job B, using the Same Prepayment/Overpayment item and amount.

Create a Custom Transaction Detail report total by Name, filter on your Prepayment item and/or account. Now you can see that Job A resulted in value In, which was used on Job B as Value Applied.

If you are managing this in a Liability account, it is time to Reconcile to an ending balance of 0. You are going to Clear from both sides, any activity for a Name that ends at 0, or for any Name where you know there is the offset, such as Job A = Job B, in this examples; clear Both of them. You always use ending Balance of 0, and the bottom right is Difference of 0, as well.

Set up Two Versions of this Custom Transaction Details report for managing as Liability: one is filtered on Cleared Status = Yes, and Retitled "Current Customer Prepayment Balances" and Memorize it. One is filtered on Cleared Status = Either, and Retitled "Customer Prepayments - All Activity" and Memorize it.

Linda1898
Level 1

Applying an overpayment; to a customer with multiple jobs

Hi,

 

I am having same problem.  I wanted to see your screenshot, but I can not open it.

 

What am I doing wrong?

 

Thank you

Emily M
QuickBooks Team

Applying an overpayment; to a customer with multiple jobs

Hey there, @Linda1898.

 

I’ve got you covered with transferring credit from one job to another. 

 

Let me guide you on how to transfer the credit:

 

  1. Find the invoice you’re transferring the credit to.
  2. Click Apply Credits. (The other credits would show under available).
  3. Pick the existing credits then Done.
  4. On the Confirm transfer window, Push Yes.

 

For detail, information check-out this article.

Transfer customer credit from one job to another

 

If you have further questions, leave a comment. Bye for now.

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