Customer Overpayments


S

Sharif

Hello,

Here is a example scenario I recently came across. If I had a invoice
with a total of say $500.00 and the customer decides to pay me
$550.00, how can I enter that in without applying the extra $50.00 as
credit? If the customer gives the extra $50.00 as a bonus or just adds
it on for whatever reason - how can I add that in without it being a
credit?
 
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R

R. C. White

Hi, Sharif.

That's a good kind of problem to have. ;<)

The extra $50 clearly is income and you should account for it as such. The
exact mechanics depend on your own bookkeeping system. You might create an
extra invoice for the $50, adding it to the customer's balance before the
payment. Or you can just make a Split transaction for the receipt, applying
$500 to the balance and $50 to your income category.

RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
(e-mail address removed)
Microsoft Windows MVP
(Currently running Vista Ultimate x64)
 
S

Sharif

Hi, Sharif.

That's a good kind of problem to have. ;<)

The extra $50 clearly is income and you should account for it as such. The
exact mechanics depend on your own bookkeeping system. You might create an
extra invoice for the $50, adding it to the customer's balance before the
payment. Or you can just make a Split transaction for the receipt, applying
$500 to the balance and $50 to your income category.
So how can I split a transaction/payment?
 
F

Fred Smith

Click on the Split button, or use Ctrl-S when entering the transaction.
 
S

Sharif

Click on the Split button, or use Ctrl-S when entering the transaction.
Maybe I am doing this wrong. I opened up the invoice form for the
payment. Clicked on receive payment, and put in the whole amount in
the check... here is the scenario:

- Invoice balance is: $243.90
- Payment total is $244.00

Even though it is just 10 cents, I need to be able to record that. I
don't want that extra 10 cents to be customer credit, I want to be
marked as income - bonus income if anything and I can't seem to do
that without that 10 cents being applied as credit. I want to solve
this problem now because it could be a much bigger amount in the
future.
 
R

R. C. White

Hi, Sharif.

What "invoice form"? Where do you "click on receive payment"? Nothing like
that in my version of Quicken 2007 Basic.

Are you sure you are in the right newsgroup? You haven't told us which
version of Quicken you are using, but maybe you should be asking this
question in alt.comp.software.financial.quickbooks, rather than here in
Quicken.

(And PLEASE do not email me directly again. That is not how newsgroups
work.)

RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
(e-mail address removed)
Microsoft Windows MVP
(Currently running Vista Ultimate x64)
 
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V

vcard

If you want the credit to be income to you, then you have to invoice for it!
(Is this what you didn't get from Fred's response?)
Just in case you need more specifics...

I would suggest creating a new category called BonusInc.
When you receive and apply the overpayment, you have two ways to deal with
it:

1) Before you apply the payment, add a new line on the existing invoice for
the BonusInc amount. The payment will then exactly offset the total, and
you won't 'see' a credit.

2) Make a new invoice for the bonus income amount. (You may want to use a
numbering scheme that clearly indicates what invoices are specifically for
overpayments - eg: perhaps adding -OP to end of original invoice number??)
You can do this before or after you apply the payment - if after, you'll
'see' a credit, and will have to manually apply it to the new invoice.

I think the former is quicker, but there are some advantages to the latter:
easier to keep track of what was REALLY due from the customer, and to report
back to customer if he has any questions on his account.

vcard
(Using Q XG 2006)


: > Click on the Split button, or use Ctrl-S when entering the transaction.
: >
: > --
: > Regards,
: > Fred
:
: Maybe I am doing this wrong. I opened up the invoice form for the
: payment. Clicked on receive payment, and put in the whole amount in
: the check... here is the scenario:
:
: - Invoice balance is: $243.90
: - Payment total is $244.00
:
: Even though it is just 10 cents, I need to be able to record that. I
: don't want that extra 10 cents to be customer credit, I want to be
: marked as income - bonus income if anything and I can't seem to do
: that without that 10 cents being applied as credit. I want to solve
: this problem now because it could be a much bigger amount in the
: future.
:



--
 
S

Sharif

If you want the credit to be income to you, then you have to invoice for it!
(Is this what you didn't get from Fred's response?)
Just in case you need more specifics...

I would suggest creating a new category called BonusInc.
When you receive and apply the overpayment, you have two ways to deal with
it:

1) Before you apply the payment, add a new line on the existing invoice for
the BonusInc amount. The payment will then exactly offset the total, and
you won't 'see' a credit.

2) Make a new invoice for the bonus income amount. (You may want to use a
numbering scheme that clearly indicates what invoices are specifically for
overpayments - eg: perhaps adding -OP to end of original invoice number??)
You can do this before or after you apply the payment - if after, you'll
'see' a credit, and will have to manually apply it to the new invoice.

I think the former is quicker, but there are some advantages to the latter:
easier to keep track of what was REALLY due from the customer, and to report
back to customer if he has any questions on his account.

vcard
(Using Q XG 2006)
To answer R.C. White, I apologize about directly emailing you I didn't
realize I did that I thought I replied to the group. Also I am using
Quicken 2007 Home & Business.
 
S

Sharif

2) Make a new invoice for the bonus income amount. (You may want to use a
numbering scheme that clearly indicates what invoices are specifically for
overpayments - eg: perhaps adding -OP to end of original invoice number??)
You can do this before or after you apply the payment - if after, you'll
'see' a credit, and will have to manually apply it to the new invoice.
Question,

Instead of creating a whole new invoice for the bonus, if I record a
new payment in the account all my payments go to, and just put the
bonus in there and categorize as a bonus inc, wouldn't that be better?
 
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V

vcard

I'm afraid I don't follow. It sounds like you want to apply (using your
previous numbers):
$243.90 payment from customer's cheque to invoice (through A/R), leaving
zero balance.
$0.10 payment from customer directly to bank or undeposited funds a/c, with
offset to bonus inc (using customer name, I presume?).

I suppose you could do that, but it is likely to become difficult to
reconcile your entries with your bank deposit. And again, if customer calls
you with questions ("what invoice did you apply my cheque for $244 to?"),
that amount won't show up. But you're welcome to try it...

vcard

: > 2) Make a new invoice for the bonus income amount. (You may want to use
a
: > numbering scheme that clearly indicates what invoices are specifically
for
: > overpayments - eg: perhaps adding -OP to end of original invoice
number??)
: > You can do this before or after you apply the payment - if after, you'll
: > 'see' a credit, and will have to manually apply it to the new invoice.
:
: Question,
:
: Instead of creating a whole new invoice for the bonus, if I record a
: new payment in the account all my payments go to, and just put the
: bonus in there and categorize as a bonus inc, wouldn't that be better?
:
:




--
 

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