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Hi Glen,

I have a customer who regularly pays the incorrect amount on their invoices, either more or less. How can i apply a different amount to the invoice payment when reconciling.

thanks in advance

Hi Jodie,

If this amount is negligible just add a second line to the cash received entry and add the difference there. Post it to revenue.

If it is a significant amount and an under payment, just post the actual amount against the invoice and it will still show the balance as outstanding. Tell the customer to pay the difference.

If it is an over payment and a significant amount there are two options:

1. (not preferred option) Still post it against the invoice it will show a negative balance as outstanding. Tell the customer to pay less on the next invoice. This option is not my preferred option.

2. Add a second line on the invoice an put it to liability account. You may need to add an account called "refunds payable". Then make a cash payment to the customer again from the refunds payable account, or on the next invoice add a line "less over payment last time" from the refunds payable account.



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