1. Home
  2. QuickBooks Discussions
  3. Applying credit balances/overpayments to Customers:Jobs

Applying credit balances/overpayments to Customers:Jobs

Hi,

I've just started working with QB in an environment that uses the A/R, Customer:Jobs, etc. and I'm running into things that I just don't know how to get implemented. I'm sure some of the experts here can help me with this learning curve!

Something that came up today: customers in this business (a mailing house) are often billed in advance for their jobs. The policy is that customers have to pay for the postage before the mailhouse will run the postage and pay the bulk mail bill at the post office. Problem is that these "invoices" are really estimates of the exact cost of postage involved. The true cost of postage is only determined after the piece is run through the mailing machinery, sorted, etc. Net effect is that often a customer will build up a credit balance in their A/R account buy, in effect, overpaying for the postage. This has caused the previous bookkeepers to come up with all kinds of unusual solutions like going back to the original invoice and "adjusting" the numbers so that the customer payment zero's out any balance on the invoice.

My thought would be to pull up the original invoice and put the TRUE postage cost on that invoice. This would result in a (usually small) overpayment of the invoice to which the payment was applied. I thought such overpayments could just be carried as credit balances on these accounts and applied to their next job, or if desired, refunded to the customer.

I'm open to any pointers on how to handle this situation.

TIA.

Stephen Porter Los Angeles, CA

*** Free account sponsored by SecureIX.com *** *** Encrypt your Internet usage with a free VPN account from
formatting link
***
Reply to
Stephen Porter
Loading thread data ...

Sounds to me like your way is both the honest and correct way to handle this.

Reply to
scfundogs

Thanks. I should have gone on further in my original post. I can't see or figure out how to apply these credits to future invoices. I'd like to create a new invoice that would automatically deduct any such credit balances from the balance due on the "new" invoice. Can this be done?

TIA.

stp

*** Free account sponsored by SecureIX.com *** *** Encrypt your Internet usage with a free VPN account from
formatting link
***
Reply to
Stephen Porter

I would not create the inital invoice for the estimated amount. I would however create the invoice after the mailing is completed.

Reply to
Allan Martin

I don't agree with "adjusting" existing invoices as this is likely to affect prior-period information that may have already been reported for management, tax, or other purposes.

I suggest a simpler solution as follows: Next invoice add an extra line for postage, entering the existing overpayment as a negative amount. If it doesn't happen too often you can use the existing Item and change the description; otherwise create a new Item identical to the existing but with an appropriate description.

Reply to
!-!

To apply the credits to an invoice, go to Receive Payments and select the customer/invoice you need. Then click on "Use credits" to apply the credit to that invoice.

Reply to
JohnC

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.