There are times when invoice payments from your clients/customers will either be in excess of the invoice total or fall short of the invoice total. These pennies and dollar amounts can be cleared from the client/customer account by refunding the overages and adjusting off the shortage in the customer payment area.
You will need to set up a ledger account to track this kind of activity. Your accountant or accounting firm can assist you with determining what kind of ledger account to set up. The example used in this documentation will be utilizing an asset account called “Over / Short”.
When a client/customer over pays an invoice it is displayed
as “Funds Available” on their account. When a client/customer short pays an
invoice it continues to be displayed as “Active Invoices” (see figure 1.1).
Figure 1.1
The first step is set up your ledger account.
Locate the customer in the customer file. Use the Transfer button in the action bar to transfer the client/customer to the Payment option. Once the client/customer has been transferred to the payment area you can proceed with clearing the account.
To clear a short payment (active invoices):
Click in the “Chk# / Type” field and select “Adjustment” from the drop down list. This will display the Adjustment GL field underneath the “License #” field. Click in the “Adjustment GL” field and select your over/short GL account. Enter the amount you wish to clear into the “Payment Amount” field. Select the invoice you wish to clear off of the client/customer account with the Red Checkmark button to the right of the line. (see figure 1.2).
Figure 1.2
Click the Accept button in the action bar to finalize and clear the transaction.
To clear an overage payment (funds available):
Click the Refund button on the top tool bar to begin the process. This will initiate the “Wizard” routine that will provide options for selection.
The first screen informs you of what is available to refund to the client/customer. Click the arrow pointing the right to continue to the next step.
Select the transaction you wish to clear off the
client/customer account by clicking into the blue box next to the transaction
(see figure 1.3).
Click the arrow pointing the right to continue to the next step.
Click the checkbox next the option labeled “Credit Card /
Cash / GL Entry” (see figure 1.4).
Click the arrow pointing the right to continue to the next step.
Click in the “Chk# / Type” field and select “Adjustment” from the drop down list. Click into the “Refund GL #” field and select your Over / Short GL account from the drop down list (see figure 1.5).
Figure 1.5
Click the Finish button to post and finalize the transaction. This will clear up the A/R on the client/customer account.