Customer Overpayments

Hello,
Here is a example scenario I recently came across. If I had a invoice with a total of say $500.00 and the customer decides to pay me $550.00, how can I enter that in without applying the extra $50.00 as
credit? If the customer gives the extra $50.00 as a bonus or just adds it on for whatever reason - how can I add that in without it being a credit?
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Hi, Sharif.
That's a good kind of problem to have. ;<)
The extra $50 clearly is income and you should account for it as such. The exact mechanics depend on your own bookkeeping system. You might create an extra invoice for the $50, adding it to the customer's balance before the payment. Or you can just make a Split transaction for the receipt, applying $500 to the balance and $50 to your income category.
RC
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R. C. White, CPA
San Marcos, TX
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So how can I split a transaction/payment?
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Click on the Split button, or use Ctrl-S when entering the transaction.
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Regards,
Fred


"Sharif" < snipped-for-privacy@gmail.com> wrote in message
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Maybe I am doing this wrong. I opened up the invoice form for the payment. Clicked on receive payment, and put in the whole amount in the check... here is the scenario:
- Invoice balance is: $243.90 - Payment total is $244.00
Even though it is just 10 cents, I need to be able to record that. I don't want that extra 10 cents to be customer credit, I want to be marked as income - bonus income if anything and I can't seem to do that without that 10 cents being applied as credit. I want to solve this problem now because it could be a much bigger amount in the future.
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Hi, Sharif.
What "invoice form"? Where do you "click on receive payment"? Nothing like that in my version of Quicken 2007 Basic.
Are you sure you are in the right newsgroup? You haven't told us which version of Quicken you are using, but maybe you should be asking this question in alt.comp.software.financial.quickbooks, rather than here in Quicken.
(And PLEASE do not email me directly again. That is not how newsgroups work.)
RC
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R. C. White, CPA
San Marcos, TX
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If you want the credit to be income to you, then you have to invoice for it! (Is this what you didn't get from Fred's response?) Just in case you need more specifics...
I would suggest creating a new category called BonusInc. When you receive and apply the overpayment, you have two ways to deal with it:
1) Before you apply the payment, add a new line on the existing invoice for the BonusInc amount. The payment will then exactly offset the total, and you won't 'see' a credit.
2) Make a new invoice for the bonus income amount. (You may want to use a numbering scheme that clearly indicates what invoices are specifically for overpayments - eg: perhaps adding -OP to end of original invoice number??) You can do this before or after you apply the payment - if after, you'll 'see' a credit, and will have to manually apply it to the new invoice.
I think the former is quicker, but there are some advantages to the latter: easier to keep track of what was REALLY due from the customer, and to report back to customer if he has any questions on his account.
vcard (Using Q XG 2006)
wrote: : > Click on the Split button, or use Ctrl-S when entering the transaction. : > : > -- : > Regards, : > Fred : : Maybe I am doing this wrong. I opened up the invoice form for the : payment. Clicked on receive payment, and put in the whole amount in : the check... here is the scenario: : : - Invoice balance is: $243.90 : - Payment total is $244.00 : : Even though it is just 10 cents, I need to be able to record that. I : don't want that extra 10 cents to be customer credit, I want to be : marked as income - bonus income if anything and I can't seem to do : that without that 10 cents being applied as credit. I want to solve : this problem now because it could be a much bigger amount in the : future. :
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To answer R.C. White, I apologize about directly emailing you I didn't realize I did that I thought I replied to the group. Also I am using Quicken 2007 Home & Business.
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Question,
Instead of creating a whole new invoice for the bonus, if I record a new payment in the account all my payments go to, and just put the bonus in there and categorize as a bonus inc, wouldn't that be better?
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I'm afraid I don't follow. It sounds like you want to apply (using your previous numbers): $243.90 payment from customer's cheque to invoice (through A/R), leaving zero balance. $0.10 payment from customer directly to bank or undeposited funds a/c, with offset to bonus inc (using customer name, I presume?).
I suppose you could do that, but it is likely to become difficult to reconcile your entries with your bank deposit. And again, if customer calls you with questions ("what invoice did you apply my cheque for $244 to?"), that amount won't show up. But you're welcome to try it...
vcard
wrote: : > 2) Make a new invoice for the bonus income amount. (You may want to use a : > numbering scheme that clearly indicates what invoices are specifically for : > overpayments - eg: perhaps adding -OP to end of original invoice number??) : > You can do this before or after you apply the payment - if after, you'll : > 'see' a credit, and will have to manually apply it to the new invoice. : : Question, : : Instead of creating a whole new invoice for the bonus, if I record a : new payment in the account all my payments go to, and just put the : bonus in there and categorize as a bonus inc, wouldn't that be better? : :
--
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