How do You Handle Over payments from a Customer? - Cash Basis
Small Over Payments
1. In cash receipts enter the customer number and click add customer check. Do not enter a check number or check amount.
2. Highlight the invoice being paid.
3. Select Inv edit button. Enter entire check amount in the Amt paid field and TAB. An over payment warning message will appear on the screen; select 'Yes' to finish data entry.
4. To avoid posting the credit for small amounts, enter the over payment amount as a NEGATIVE amount in Cr/adj amt field. The End balance Total changes to zero.
Customer history is updated showing both over payment and adjustment.
Large Over Payments
(Two Methods)
Over payments may occur and be posted differently to a customer account depending on your office procedures.
1) Apply entire check amount to the invoice and leave the credit on the invoice. Highlight the invoice to be paid and click Inv edit. Enter the entire check amount in Amt paid field. This creates a credit invoice amount on the customers account. Over payment is applied to sales, freight and sales tax, based on the original distribution of the invoice, for the increased payment and updated to sales tax reports.
2) Apply the correct amount to the invoice and post over payment amount on account. Pay invoice(s) first; this applies only the amount of the invoice leaving a Bal to dist. Select the On acct button; this creates a credit on the customer account for Inv # 0 and Ord # 0. The amount will be included in the unapplied credits total when reviewing Accounts Receivable Aging Detail.