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judith4
Level 3

Customer Overpayment on EFT

We are a construction contractor for new homes. Our customer is the developer. We have a base price for each lot and options are added. The sales person added a duplicate option after the lot was complete. I informed them it was incorrect and they insisted it was correct. I added the additional option to the estimate and created an invoice for the phase. After they paid us via direct deposit they determined it was an overpayment. Now they are going to debit our checking. How do I handle this in QB? Do I enter a line item on the estimate with a negative amount and create a new invoice with a negative? 

Solved
Best answer December 10, 2018

Best Answers
qbteachmt
Level 15

Customer Overpayment on EFT

"We have a base price for each lot and options are added."

Are you using Estimates for this part, and change orders for the Options?

"The sales person added a duplicate option after the lot was complete. I informed them it was incorrect"

Duplicate option? Duplicate of what? How is it incorrect?

"and they insisted it was correct. I added the additional option to the estimate"

I recommend never changing an estimate; you add this as an Additional Estimate = the additional scope of work. This is especially important if you Progress Invoice from the estimates, as opposed to Time & Materials.

"and created an invoice for the phase. After they paid us via direct deposit they determined it was an overpayment."

It isn't an Overpayment. Perhaps you means it is an OverCharge?

"Now they are going to debit our checking. How do I handle this in QB? Do I enter a line item on the estimate with a negative amount and create a new invoice with a negative?"

I recommend you stop updating Estimates. Each of these is a New transaction and new activity.

A refund from a Paid condition is done using a Credit Memo. In your case, if the entire additional scope on that invoice is wrong, then list the same info here, by editing the invoice; at the top, create the Credit Memo for Refund. At the top of the Credit Memo is the icon to issue the refund.

You don't do this for an Overpayment. You do this for an OverCharge condition, that is paid in full.


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7 Comments 7
qbteachmt
Level 15

Customer Overpayment on EFT

"We have a base price for each lot and options are added."

Are you using Estimates for this part, and change orders for the Options?

"The sales person added a duplicate option after the lot was complete. I informed them it was incorrect"

Duplicate option? Duplicate of what? How is it incorrect?

"and they insisted it was correct. I added the additional option to the estimate"

I recommend never changing an estimate; you add this as an Additional Estimate = the additional scope of work. This is especially important if you Progress Invoice from the estimates, as opposed to Time & Materials.

"and created an invoice for the phase. After they paid us via direct deposit they determined it was an overpayment."

It isn't an Overpayment. Perhaps you means it is an OverCharge?

"Now they are going to debit our checking. How do I handle this in QB? Do I enter a line item on the estimate with a negative amount and create a new invoice with a negative?"

I recommend you stop updating Estimates. Each of these is a New transaction and new activity.

A refund from a Paid condition is done using a Credit Memo. In your case, if the entire additional scope on that invoice is wrong, then list the same info here, by editing the invoice; at the top, create the Credit Memo for Refund. At the top of the Credit Memo is the icon to issue the refund.

You don't do this for an Overpayment. You do this for an OverCharge condition, that is paid in full.


judith4
Level 3

Customer Overpayment on EFT

I'm sorry. I got so busy I neglected to reply and thank you for your assistance. I issued a Credit Memo as you mentioned in your last paragraph and the adjustment was made correctly.
Anonymous
Not applicable

Customer Overpayment on EFT

How should I handle a "duplicate" payment in which customer wants a Credit Memo sent to him?

(Customer sent EFT for full amount of invoice, I entered EFT $ on Receive Payments screen & applied to invoice.  One month later, client sent another EFT for full amount of same invoice.  I entered EFT $ on Receive Payments screen, but since invoice was already marked paid, did not apply to an invoice.  The only option QB provides me are "leave as overpayment" or "refund customer".  I need to issue a Credit Memo.  However, if I manually create Credit Memo, that causes ANOTHER credit on the account.)  I'm not sure how to proceed...
Anonymous
Not applicable

Customer Overpayment on EFT

How should I handle a "duplicate" payment in which customer wants a Credit Memo sent to him?

(Customer sent EFT for full amount of invoice, I entered EFT $ on Receive Payments screen & applied to invoice.  One month later, client sent another EFT for full amount of same invoice.  I entered EFT $ on Receive Payments screen, but since invoice was already marked paid, did not apply to an invoice.  The only option QB provides me are "leave as overpayment" or "refund customer".  I need to issue a Credit Memo.  However, if I manually create Credit Memo, that causes ANOTHER credit on the account.)  I'm not sure how to proceed...
qbteachmt
Level 15

Customer Overpayment on EFT

"The only option QB provides me are "leave as overpayment" or "refund customer".  I need to issue a Credit Memo.  However, if I manually create Credit Memo, that causes ANOTHER credit on the account.)  I'm not sure how to proceed..."

From that Payment screen, there is Leave as an Overpayment, with the Pop up offer to Print a "Credit" for them, which is a Proof of payment and not actually a Credit Memo.

Making a Credit Memo is a Duplicate process. You already have the overpayment = negative AR. Making a credit memo is a Different way to create negative AR, such as from a return or overcharged condition. You don't want a Credit Memo.

And at any time, you can run a Statement, run it to include the date of the Payment, and the customer sees the Payment listed and the Running balance right there.
Admin-USA
Level 1

Customer Overpayment on EFT

Is this the same answer for QBO?

Thanks,

JasroV
QuickBooks Team

Customer Overpayment on EFT

Hi @Admin-USA.

 

If you received a payment from your customer from an invoice that is already marked paid, you can use Sales Receipt to record the payment. Let me show you how.

  1. Go to the (+) Plus icon.
  2. Under Customer select Sales Receipt.
  3. Enter the needed information and click Save.

For more information, you can refer to this article: How to Record a Sales Receipt

 

Then, you can also send a Statement to that customer to show a summary of their invoices, payments, credits, and balances.

 

Here's how:

  1. Go to the Sales or Invoicing menu and select Customers.
  2. Select the customer or customers you want to make statements for.
  3. In the Batch actions drop-down, select Create statements.
  4. In the Statement Type drop-down, select the type of statement you'd like to make.
  5. Fill in the date fields and select Apply.
  6. Select Save, Save and send, or Print or Preview.

For more detailed steps, please refer to this article for reference: Create Customer Statements.

 

Also, you can visit our Payments page for QuickBooks Online to learn some tips on managing your payments

 

As always, if you need further assistance, please don't hesitate to leave a comment below. I'm always here to help.

 

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