How to record a customer's payment where the amount is greater than the invoiced amount and without adjusting the original invoice.

Scenario 1: The extra payment will not be claimed by the customer

1. Create a new invoice for the bonus.
2. Date the bonus invoice using the same date the cheque is received.
3. Go to the Receipt window and post the payment received to cover both invoices.

Scenario 2: The extra payment will be applied to a future invoice

1. Enter the bonus amount as a customer deposit. See DocLink: How to enter a customer deposit.

Scenario 3: I need to record the overpayment and create a refund cheque

Step 1: Record the Receipt

1. Open the Receipts window
2. Select Receipt menu
   • if Enter Deposits is not checked, select it to enable the Deposit Amount field
3. Select the appropriate Customer name
4. Enter the amount being paid against the invoice(s) in the Amount Received column
   • The Amount Received cannot exceed the invoice total
5. Enter the overpayment amount into Deposit Amount; this amount will be recorded to Prepaid Sales / Deposit account.
6. Select Process

Step 2: Record the Refund

1. Open the Receipts window and create a second receipt.
2. Select the Customer Name
3. Select Paid By Cheque
4. Select the correct bank account from the Deposit To drop-down list
5. On the credit line (it will be red), enter the Amount Received as a positive number. The total will display a negative amount.
6. Select Process
7. Select Yes

Step 3: Print the Refund Cheque

Note: This step is only to print a cheque from the software. If you are hand-writing the refund cheque, skip this step.

1. Go to the Payables / Vendors and Purchases tab on the Home Window
2. Create a new Vendor named 'customernamerefund' if you like - DocLink: How do I create a vendor record?
3. Open the Payments window
4. Select the 'customernamerefund" vendor for Pay to the Order of
5. Select Make Other Payment
6. Select By Cheque
7. Enter the Cheque No.
8. Select Continue
9. Select any account in the From dropdown menu
   • Note: Which account is used does not matter because the cheque will not be processed / saved and it will have not have an effect on the general ledger
10. Enter the refund Amount
11. Enter the Invoice/Ref. and Comment if desired
12. Print the cheque without selecting Process
    • Do not post this transaction because the transaction reversal in Steps 1 and 2 are already completed
      
13. After printing the cheque, discard this transaction by closing the window and confirming discarding

DocLink: How to enter a customer deposit