A client has overpaid me for a recent invoice (their error). What is the best method to mark invoice as paid and allocate the remaining credit to a credit note on that clients account?
I’ve read this, Managing credit notes
and tried to enter negative invoice to client, but it doesnt give me the option to “Hold funds on client account”? any ideas why not?
You shouldn’t need to do anything special - when you tag the transaction on your bank account as “payment from a customer” it won’t find any exact matches (because they’ve overpaid you), but if you then select “pay down multiple invoices…” then you can use part of the payment to pay off the outstanding invoice and the remainder will automatically become a credit on their account.
When you next issue them an invoice you can “log payment -> apply from credit” to apply the overpayment credit to that invoice, leaving it with a lower outstanding balance.
Despite the name, “pay down multiple invoices” is basically the option to use whenever you are in any situation more complex than a payment that exactly matches the total of one single invoice - it can be used for applying one payment to several invoices, a partial payment to one invoice, a prepayment where the invoice has not yet been issued, or the overpayment situation you’ve got here.
Thanks, yes I can see credit on their account, but is there a way I can download a credit note to send to client to show they have the credit on their account?
Would the client statement be sufficient? I don’t know myself as my business is a retail shop and I don’t use QuickFile for invoicing directly (I just record daily takings in bulk).
Or I suppose you could send them a copy of the “payment” record itself - from the invoice click the link at the top to “a payment SP…” and that’ll say payment for £X, £Y allocated to invoice N, £Z remains unallocated.
thanks again, i guess statement will have to do. Many thanks
Your situation isn’t really a credit note in the usual sense - you’re not cancelling or waiving part of an amount you had previously invoiced, it’s just that the customer paid more than they were invoiced for. A statement is the right thing to send them here, to show them the link between how much you charged them and how much more they paid.
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