Avoiding negative AR for customer overpayments?

1

When customers make an overpayment, Accounts Receivable becomes negative. Rather than a negative AR, I would instead like a (positive) liability for, say, “Customer Overpayments.”

However, if I choose this liability account for the additional payment line (rather than , then those funds are not automatically applied to future sales invoices. Just as Manager automatically tracks Accounts Receivable associated with customers, is it possible to automatically track Accounts Payable - or some sort of liability account - associated with them?

More generally what would be the recommended approach to track overpaid funds per customer - either to apply to future invoices or refund the customer?

2

Welcome to the forum @poundifdef,

Unfortunately that’s not possible.

However, you can achieve this manually.

Of course if the customer isn’t being too pushy for refund, it’s better to apply to future invoices – that’s just better cash flows.

Manager automatically applies any negative balances in Receivables to new invoices – however, it needs the negative balances in order to do that.