On one of my cash jobs recently, my client (nor I) had any change, so I accepted an amount that was £x over what it should have been. I said I would knock this amount off the next invoice. If I were to record it in QF, I guess it would be like a credit (or prepayment?). Question: do I need to raise a transaction in the system and, if so, how would I do it? Effectively, I need to see a credit for £x sitting on the client’s ledger (which can just be offset - and reduce - the total of the next invoice. Am I correct here? Assistance please…
That should be fine. I don’t know whether you can put in an overpayment directly from the invoice view but you can certainly do it from the bank view. Create the sales invoice for the correct amount in the normal way but don’t log a payment, then add a “money in” transaction to your “petty cash” bank account for the amount they actually paid you. Tag this transaction as payment from a customer, “pay down multiple invoices”, select the invoice you just created and there should be an option to leave the overpayment as a credit on the customer’s account.
The next time you raise an invoice for them you can part-pay it using the credit, leaving them to pay the balance as normal.
Yes you can, so you can just log a payment to the invoice and enter an amount that exceeds the invoice balance, any overpayment will just get assigned as a client credit and can be offset against the payment of any future invoices.
Good to know, thanks.
Thanks for tha, it didn’t coour to me that you could over pay an invoice like that. Far less long winded than creating a credit then paying the invoice from it which is what I would have done.
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I think maybe adding a helper here would make it clearer, I doubt it’s widely known.
Glenn - what do you mean when you say ‘adding a helper here…?’ Also, I tried following your guide and my invoice showed as fully paid but when I examined the client’s account, I could not see the client credit for the £x difference. The only way I saw any reference to the credit was when I clicked on the tagged button from the line entry on the bank statement screen…any comments?
I just mean a little question mark which you can hover over and it will provide some more info.
@gardenman_2803 can you PM me your account details and the client name and I shall take a look. You should be seeing the client credit on the client details screen.
On this theme, I have a situation where one of my clients has a £5 credit sitting on their account (through an overpayment on an invoice), but the client has moved and I know I will not be able to physically refund this amount. So I have a situation where the sales invoice was for £35 but client paid me £40 (and that was banked at the time). How can I get rid of the outstanding £5 in the books? I suppose I could ‘artificially’ modify the original invoice to £40 and take the £5 credit or even raise an additional ‘dummy sale’ invoice for the £5 in isolation. Not too keen on these options as it inflates my sales figure slightly. Any other thoughts would be welcome…thanks
Was this overpayment in error or was it for a tip? If for the latter could you not just move it to a relevant nominal?
Neither actually. The customer paid cash and (neither of us had no change at the time) so handed me £40. The intention was always to offset it against the next job (i.e. if it came to, say, £35, I would only take a payment of £30 from the client, but that opportunity never arose and nor did I get a chance to physically return the £5.
Hi @gardenman_2803, I would post it to a dummy invoice, e.g. overpayment on invoice ###. It needs to be posted to some double entry code and sales would be the most appropriate.
The other option is to go into the £5 credit and refund it to petty cash.