I refunded a customer who over-paid. I refunded the balance on their account less the bank charge for the transaction. The charge amount now appears as a remaining balance on their account. How do I allocate this to offset the bank charge?
You could post an invoice for the bank charges, you may have to post it somewhere else and then journal it into bank charges.
Alternatively you should be able to tag the payment to ‘something else not on the list’ and then against bank charges.
I’m sure there is an article on this, but I can’t locate it. I will post a link as soon as i’ve found it
Thanks for the quick response. The original full payment amount is tagged as allocated to the customers invoices and the refund credit note leaving the bank charge amount on their account as a ‘pre-payment’. I can see the payment details with invoice and credit note allocations using the “Sales Payment View” in QF but don’t see how to tag the unallocated balance of the payment.
Where would you perform this action?
So this credit is now effectively extra income for you, that you charged your customer to cover costs you had already incurred. The most transparent way to do it would be to invoice the customer for this amount (and assign the invoice line to something like “miscellaneous income” rather than general sales - click the cog wheel in the description box) and mark that invoice as paid from the credit balance. Then the customer would have their own record that this is what you’ve done.
Thanks Ian. I raised an invoice for the bank charge and cleared the client balance that way.