Customer paid money not due

If you used Receive Payments then you should have entered the entire amount received. QB would have warned you that there was an overpayment to which you should have accepted and allowed QB to apply it as an overpayment (leaving a negative $4 in A/R for that customer).

Another option is to create an Other Charge item called Over/Short. I've seen the account it points to setup as either an Over/Short income account or as an expense account. I prefer the income account. You should be able to create a Credit Memo for the customer using the same Over/Short item.

OK, thanks, I was able to create a separate entry under Receive Payments and enter the $4.00. I'm assuming that to do it all at once, I'd have to create an invoice and then go to Receive Payments instead of using the icon that lets you make a sales receipt and receive money with the same entry.

Bob

That's fine.

Yes.

Right. Sales Receipts are only used for sales where you're paid the exact amount at the time of the sale.

I should have added that if you create the over/short item then you can use a Sales Receipt and just add the over/short line in.

However the downside to using this account for monies you intend to pay back is that it doesn't show on A/R or A/P. You have to remember to create a credit memo.

I generally only use that item for penny differences where it won't be paid back to or collected from the customer.

Thank you very much.

Bob