How to Reconcile Customer Overpayments and Manage Cash Refunds

How to reconcile customer overpayments and manage cash refunds

A situation may arise when a parent has paid more than what was due, or paid the correct amount due, however because of an error in the Activity listing price or another reason, the payments do not match. Here are some examples of working your accounts in this scenario

How do I manage an overpayment?

A situation may arise when a parent has paid more than what was due, or paid the correct amount due, however because of an error in the Activity listing price or another reason, the payments do not match.

 

Here are some examples of working your accounts in this scenario

 

A parent has paid too much in error:

 

1. If the total amount paid was higher than the amount due and invoice amount you can either refund or apply credit to another invoice.

We are working on having the ability to refund payments back to a card if this was how the customer paid, we do not have an ETA so in the interim you can refund directly back to the customers bank account.

 

Step 1

Apply the credit to the invoice for the amount that was due

 

If you are using Xero, when you sync and reconcile the payment will automatically assign to the invoice, but it will not pick up the additional payment and register it anywhere. Therefore as you have received the money into your bank account you will need to raise a credit note for the extra payment.

 

If you are using MYOB you will apply the credit to the invoice yourself, even if you added the extra payment it will not show, it will only clear the amount due, therefore as above a credit note is required to accurately record.

 

Step 2

Raise a credit note for the over payment

After you have recorded the payment and the invoice is clear, process a credit note in the following way:

 

  • Start by clicking on Credit Notes near the top of the page under 'Money'

 

  • then click on the button New credit note (top right-hand corner)

 

  • Fill out the details for the recipient of the credit note and make sure to reference the invoice number of the invoice that you are crediting.

 

  • After you have completed the credit note, click the orange button (bottom right corner) to 'Create credit note'

 

  • Your credit note will now be in Drafts

 

  • View this and when happy you can select the CN and approve, or apply to invoice or refund when this Card option is available.

 

Credit notes under money

 

new credit note

To apply this credit note to an outstanding invoice, 'check' the box of the credit note you have just created and click'Apply to Invoice'. Done!

 

If you would like to refund the overpayment rather than apply to another invoice, you can follow the above procedure in the same way.

As below raise a CN and enter your notes

 

create credit note

 

1. Select your credit note from the CN tab as below

 

Select credit note from the CN tab

 

2. Select Refund from the cog on the far right

 

Create Refund

 

3. Enter the Refund Information

 

 

Enter refund information

 

4. See the credit note moves into Refunds tab

 

5. Now process a bank credit to their account through online banking

 

There is also a applied to invoice section which can be found under the plus symbol +

Applied to invoice

Was this article helpful?
0 out of 0 found this helpful

Comments

0 comments

Please sign in to leave a comment.