Payment application and recording

USA Discussion in 'Businesses / Corporations' started by Andyy, May 8, 2018.

  1. Andyy

    Andyy

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    Is it ok to post payments that did not occur? Or more specifically, apply overpayment credits on one account to another unrelated AR account? Is there a a formal regulation that addresses this?

    For example, payer 1 has an overpayment of $1000, without documentation is it ok to post a takeback on payer 1 and post a $1000 payment to another payer 2. Without a paper trail.

    Thank you for your input
     
    Last edited: May 8, 2018
    Andyy, May 8, 2018
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  2. Andyy

    kirby VIP Member

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    To the first and second questions: NO!
    First off, yes there is a regulation that addresses this. Look up the law on "illegal conversion of property."
    Second this is a misstatement of the accounting books.
    Beyond that, Once payer 1 figures out they overpaid you and asks for a refund after you applied it to payer 2, what are you going to do?
     
    kirby, May 18, 2018 at 4:16 PM
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