What is the best method to write off a customer overpayment. These are not payments that should be carried over to another invoice, but rather, extra amounts the customer pays as a gratuity or tip?
- posted
15 years ago
Writing off customer overpayments
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- posted
15 years ago
I'd do a split on the accounts w/ the overage to a Misc income account as the amount is also taxable. If this is frequent, a specific account might be worthwhile to keep track.
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- posted
15 years ago
Create an invoice for the amount of the overpayment and then apply the credit against it.
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- posted
7 years ago
replying to Kevin, Big Leigho wrote: A tip?I don't think so. When people pay extra is to whittle down the next months bill or to pay early. Unless, it is an eating establishment.
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- posted
7 years ago
replying to dpb, Big Leigho wrote: I would offer the client a credit that exceeds double or triple the amount of the over payment if my company would prefer to not refund the money. A reasonably priced double or triple credit provides worthwhile incentive. Any credit to the client can be written off as a loss to the company and the company income tax liability reduced.
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- posted
7 years ago
What if the customer actually wants to pay a bonus and not a restaurant? Suggestions on how to account for that as income other than modifying the invoice?
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- posted
7 years ago