1

A customer overpaid me by $4. When I processed the payment (business->customer->process payment), it left me with a $4 imbalance, as there was no invoice to apply that to.

I decided to try issuing a $4 credit note, which seems like the right thing to do: it gave me something to apply that $4 to.

The statement (actually a customer report) correctly shows a $4 credit balance. But there's no $4 in cash. The transaction in AR shows a $4 credit, debiting the income account for the customer.

I probably didn't do this right; so what's the correct way to do this?

2
  • Interestingly, there is no "Payment" transaction in AR for the $4. I suspect this is why there's no debit to cash. It looks like I'm partway there... maybe it will all work out when I have an invoice to apply the $4 credit note to? Seems odd that the $4 cash isn't accounted for in the cash account, though.
    – fbicknel
    Nov 15 '20 at 15:23
  • Maybe I'm overthinking this. I just deleted the payment to sort of "start over". I paid the appropriate invoices, with the extra $4 in the payment, just as it was. Running a statement shows the $4 credit balance on the account: so that's good. In the payment, there's an extra $4 split crediting AR, and the entire payment appears in cash. Maybe I just did something strange the first time.
    – fbicknel
    Nov 17 '20 at 19:20
1

Turns out, simplicity rules. Just pay the invoices as you would normally, reflecting the entirety of the payment on that transaction. There's an extra AR credit for the overage, but other than this, nothing strange shows up.

Running a statement (customer report) reflects the overage as a credit on the account.

No credit memo needed. I think I over-complicated things.

zen.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.