How do I record when a customer over pays and wants to get cash back instead of having a credit?

How do I record when a customer over pays and wants to get cash back instead of having a credit?



How to record the repayment when a prepayment gets overpaid (and other financial tongue twisters)

The customer sends a check for more than the total on the order, or otherwise overpays on goods or services. When a cash refund is desired rather than a credit on the account, how does this get recorded? 

When there is an overpayment on a prepayment, two items need to be recorded:
Create a credit memo for the overpaid amount. Use a service item on the credit memo.    When creating the service item, use Customer Prepayment as both the Sales and Expense Accounts.
  1. On the customer card, check the vendor checkbox (we need to make a payment).
  2. Create Credit Memo for the overpaid amount.
  3. Create a service item with Customer Prepayments accounts as both the Sales and the Expense 
    Accounts.
  4. Create a Payment (from the Bank Menu) .
  5. Enter the Customer in the Vendor field on the payment.
  6. Create a Cash Receipt.


    • Related Articles

    • Cash Receipts

      Cash Receipts A Cash Receipt records a payment made by a customer. In CustomBooks™, a Cash Receipt is used for recording the following kinds of transactions: payments received from a customer which may include partial payments and payments for ...

    • Credit Memos

      Credit Memo A credit memo reduces the amount owed to your company and may be issued because the customer returned all or part of a product on an invoice. Credit Memos / Refunds may also be issued when there a pricing dispute, a marketing allowance, ...

    • Cash Sales

      Cash Sales in CustomBooks™ combine the functionality of Sales Invoices and Cash Receipts in one step. Cash Sales can be used for a point-of-sale system or anywhere the product and the cash exchange hands at the same time. This type of transaction ...

    • Applying Customer Credits

      Under normal circumstances, cash receipts received by customers are applied automatically to the invoice if the cash receipt is generated from the invoice.    In the case of Sales Order Prepayments, the prepayment is applied automatically to the ...

    • Integrating Paya for ACH and Credit Card Transaction Processing

      Paya Overview Paya is a leading payment processing provider that enables businesses to securely and efficiently manage ACH (Automated Clearing House) and credit card transactions. By integrating Paya with CustomBooks™, users can optimize their ...