Overpayment of invoice
I have a customer that has paid an invoice for more than what was billed. In our old system we could overwrite the amount when we posted the payment and that we create a credit on their A/R. Is this an option when applying payments? Or do I need to create a j/e?
When you apply the payment to the invoice only the amount of the invoice will be credited, leaving the overpayment as a general credit to A/R for that Customer. You can use Customer Refund to issue a refund check. Or leave it there to apply to a future invoice. (The credit memo solution suggested in the previous post won’t work, unless you’re trying to write-off and keep the overpayment as misc income in which case I still wouldn’t do that as a credit memo. In most states that’s actually illegal and you have to escheat that overpayment to the state after 2 years)