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sarah17
Level 2

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

QBO will not let me match the payment because it doesn't match. I tried creating a payment under the Customers profile and then in our bank account in QBO, I just added the payment and put the customers name but that didn't do what I needed it to do.
13 Comments 13
Rustler
Level 15

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

Delete what you did

use receive payments in QB, enter the actual amount paid for that invoice, when you save QB will ask if you want to refund or keep as a credit.  Then use deposit funds and put the received payment in the bank

 

download banking and match

 

the work flow is and has always been, enter transactions, download banking, match

sarah17
Level 2

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

I received payment and put in the amount of the check and QBO did not ask me what I wanted to do with the difference. So do I create a credit memo?

MarsStephanieL
QuickBooks Team

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

Hi there, @sarah17.

 

You might have entered the payment along with the invoice transaction, that's why it was not recorded as a Credit memo. I can show you the way to correct this. First, you'll have to delete the payment transaction. Then, re-create it and enter the total amount paid in the Amount received box. I'll also include how you can match this transaction on the Banking page. That way, we can ensure that the transaction is cleared.

 

Here's how to re-create the payment:

  1. Go to the +New button and choose Receive payment.
  2. Enter the customer's name and tick the box beside the invoice transaction.
  3. Enter the total amount paid in the Amount received field. Note: After entering the amount, you'll see in the sub-total field that there's an Amount to credit, that is the excess payment of the customer.
  4. From the Deposit to field, click the drop-down button, and choose Undeposited Funds.


     
  5. Select Save and close.

 

Once done, you can deposit the customer's payment. I'll show you the steps below.

  1. Navigate to the +New button and select Bank deposit.
  2. Select the account you want to deposit the payment.
  3. Tick the box beside the customer's payment.
  4. Select Save and close. This is how it looks like:

 

Then, you can match this if the payment transaction is already downloaded on the Banking page. You can refer to the steps below.

  1. Go to the Banking menu and select the bank where your customer's payment has been deposited.
  2. Find the transaction with the correct details. QuickBooks will automatically detect the transactions that matched with the downloaded ones from the bank. A green mark will show on the transaction.

  3. Click the transaction and verify the details.
  4. Select the Match button.

You can also review the process in this article: Categorize and match online bank transactions in QuickBooks Online.

 

When you're ready to assess your business financials, you may consider checking out this article: Reconcile an account in QuickBooks Online. This contains a video tutorial and tips on how to fix any issues during the reconciliation process.

 

Please don't hesitate to tag my name in the comment section below if you need further assistance. I'd be happy to help you succeed. Take care and have a blessed day!

sarah17
Level 2

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

@MarsStephanieLthank you for the reply. Question is, what happens to the difference, in your example, if $400 is deposited on a $250 invoice (what happens to the $150)? I received the payment in the full amount and I'm left with a credit but I'm not sure what to do with that credit. I sent the customer a check for the difference today but not sure what to do with that reconciliation one it comes into QBO. Thanks!

LieraMarie_A
QuickBooks Team

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

I'm here to guide you on how to clear and link the check to the customer's open credit, @sarah17!

 

Did you record the refund through Check using the following steps below? When recording a refund using Check, you'll have to debit Accounts Receivable for the amount of the customer's open credit to offset the overpayment.

  1. Select + New.
  2. Select Check.
  3. Select the customer you want to refund from the Payee ▼ drop-down.
  4. From the Payment account ▼ drop-down, select the bank account where you deposited the overpayment too.
  5. On the first line of the Category column, select an Accounts Receivable.
  6. Enter how much you want to refund in the Amount field.
  7. Fill out the other fields as you see fit, then select Save and close.
    Capture.JPG

 

Anyhow, you can edit the transaction using the steps above. I'll show you how.

  1. From the left menu, select Expenses, and choose Expenses.
  2. In the Expense Transactions window, find the check to edit.
  3. Under the Action column, select View/Edit.
    Capture.JPG
  4. Update the transaction as needed.
  5. Select Save and close.

 

Once done, here's how to link or apply the refund to the customer's credit.

  1. Select + New.
  2. Select Receive payment or Receive invoice payment.
  3. Select the same customer you used for the check.
  4. Fill out the other fields as you see fit.
  5. Under the Outstanding Transaction and Credits section, select the checkbox for the check and unapplied payment.
    Capture.JPG
  6. Make sure the payment is equal to the open balance, then select Save and close.

 

You can refer to these articles for more insights about handling customers credit or overpayment in QuickBooks Online: 

 

Lastly, when it's time to reconcile your account, it will show the received payment, as well as the Check you sent to your customer. It will compensate to the actual amount of the invoice.

Capture.JPG


Keep in touch with me here should you have any additional questions or concerns. I'm always available to help.

sarah17
Level 2

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

@LieraMarie_A  Here's what I originally did: I first received the full amount (let's say $1500) on the invoice that was $1000 which left me with a credit of $500, which I then sent a check to that customer but it's done online through Wells Fargo so it's not a physical check that I can record. I am hoping that once that $500 is out of our account (in QBO) I can then match the payment received ($1500) for the invoice and the credit of a remaining balance ($500)? If not, I'm not sure what to do because others have said that once I received the payment in the full amount received of $1500, that it would create a credit of $500 but it didn't do that for me. I hope I am making sense. I can delete what I've done and start over but I'm not exactly sure what steps I'm taking is giving me the right results? Thanks for your help!

Kristine Mae
Moderator

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

Let me help you from here, Sarah17.

 

When a customer overpays, it will create a credit on their account. Then, you have three options on how you can handle the overpayment:

  • Apply the credit to an old invoice or future invoices
  • Refund the customer
  • Record the overpayment as a tip

In your case, you've sent a refund check to your customer. It means that you'll also have to create it in QuickBooks Online. This way, the matching of downloaded and existing transactions will be easy. I'd suggest deleting and starting over to ensure that we'll record it correctly. Next, record the payment the usual way so it will create a credit. Then, create a customer refund

 

You can also check this article for better guidance: Handle a customer credit or overpayment in QuickBooks Online.

 

If any questions arise, please feel free to leave a comment below. We'll get back to you as soon as we can.

debi8
Level 2

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

My issue is similar, but different.  I get a feed from the bank for customer payments.  I select a deposit and then select Find Match.  I check off everything that is being paid, but I come to one where the customer has overpaid.  Exactly what do I do?  If I put it as a reconciling transaction, I can't figure how to use the credit which the customer has now deducted on their next payment.

RCV
QuickBooks Team
QuickBooks Team

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

I've got some steps we can perform to apply for the customer's credit when matching the downloaded transactions, debi8.

 

For customer credit or overpayment, we can use the credit toward an invoice, refund the customer, or enter the overpayment as a tip in QuickBooks Online (QBO). Just follow the steps and details in Handle a customer credit or overpayment in QuickBooks Online article to keep track of the credits in your account.

 

Then, deposit the customer's payments in your account. Let me show you how: 

  1. Click the +New Plus icon. 
  2. Select Bank Deposit.
  3. Choose the account you want to deposit the payment.
  4. Tick the box beside the customer's payment.
  5. Press Save and close.

Once done, match the payment transaction that is already downloaded on the Banking page. Here's how:

  1. Go to the Banking menu and select the bank where your customer's payment has been deposited.
  2. Find the transaction with the correct details. QBO will automatically detect the transactions that matched with the downloaded ones from the bank. A green mark will show on the transaction.
  3. Tick the transaction and verify the details.
  4. Press the Match button.

If the amounts are different, just locate additional matched transactions or select Resolve Difference. This opens the Add resolving transactions fields wherein we can include the Category and Amount of a resolving transaction until the difference equals zero. We can also use the Add new transaction button to add multiple resolving transactions. Just review the process in the Categorize and match online bank transactions in QuickBooks Online article. 

 

When you're ready to assess your business financials, you can reconcile your bank account in QBO. Feel free to visit our Banking page fr more insights about managing your bank transactions.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. You have a good one.

Double Trouble
Level 1

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

In my case, the "extra" money paid was paid as a tip, and customer does not want a credit on next invoice.

JuliaMikkaelaQ
QuickBooks Team

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

Thanks for sharing your concern here in the thread. 

 

I know how important recording the tips you received and matching them to your invoice transactions is to make your account balance. Let me guide you to get you back in matching your transactions.

 

There are three options to record invoice overpayments in QuickBooks Online. It includes sending a refund, recording a credit memo, or a tip. Since your customer doesn't want to credit it to their next invoice, I recommend creating a tip account so you can record the extra money received.

 

First, you can create a new income account to track the tips. Refer to the steps below:

 

  1. Go to the Gear icon, then select Chart of Accounts.
  2. Click the New button, then select the Income icon.
  3. In the Save account under, select Other Income.
  4. In the Tax form section dropdown, select Other Miscellaneous Income.
  5. Enter an Account Name, like "Tips or Tip Revenue".
  6. Click Save.

 

Next, you need to create a tip item. Here's how:

 

  1. Go to the Gear icon, then select Products & services.
  2. Click the New button, then Non-inventory.
  3. Enter the Name, like "Tips".
  4. Under the Income account dropdown, select or enter the tip account you created in the first step.
  5. Click Save and Close.

 

Then, you can now record the extra money as a tip by creating an invoice. 

 

  1. Click on the +New button, then select Invoice.
  2. Fill in the necessary details.
  3. Select the tip you created for the Product/service, then enter the extra money you received in the Amount column.
  4. Select Save and Close.

 

Lastly, you can now record the payment as received.

 

  1. Click on the +New button, then select Received payment.
  2. Select the customer and payment method used.
  3. Select the invoice you created.
  4. Click Save and Close.

 

Furthermore, you can categorize and match your transactions to make your account balance. 

 

Also, you can review and match your bank statements with the recorded transactions in your QuickBooks account: Reconcile an account in QuickBooks Online.

 

If you have other concerns besides recording tips, you can leave a comment or start a new thread in the Community space. We're always here to give you the support that you need. Have a wonderful day!

Mailen
Level 1

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

In my case,I have a payment that is less than the invoices amount because I was charged a comission or fee by the customer I performed the services for,cause he is an intermediary,so When I try to match,of couse it does not let me match. And if I go to receive payment,I record it on undeposited funds,But then I do not find out how to match the dowladed payment I have from the bank please help

SashaMC
Moderator

How do I match a payment to an invoice if the amounts are different? We had a customer send a check for more than they owe. Also, do I create a credit memo for remainder?

Hello Mailen,

 

Thank you for reaching out to the QuickBooks Community! For this situation, it would be best to connect with your accountant to see what would be the best approach. However, for the commission fee, you could add a line item to the invoice. If you don't have an accountant, we offer a way for you to contact  Proadvisors. They even provide a free consultation for most. Here's how:

 

 

  1.  Go to this Find my Accountant link.
  2. In the Find an expert in section, choose what you're looking for, then use your search field to enter a City or ZIP code.
  3. Select Search.
  4.  Browse through the results and find one that works best for your business. You can click on each ProAdvisor's profile to learn more information about them.

If you have any other questions, I'm just a post away. Have a wonderful day!

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