One of my customers has overpaid an invoice. How should l best account for the additional income in that transaction?
And how should I best account for the transaction of returning the overpaid amount?
Thats great! I assume when I repay the overpayment I can also categorise it as Customer Advanced Payments.
Also, when I go to the chart of accounts, Customer Advanced Payments shows as having 265 transactions, although I have never intensionally used that account before. When I click on that number it shows all the transactions as being $0.0 Any idea what is going on there?
Yes, if you are refunding overpayment, simply categorize the payment to customer to Customer advance payment account.
Those 265 transactions you are talking about are opening balances. When you create new customer, Manager will automatically create opening balance transaction for each customer under Customer advance payment account with amount 0.00 so if you are switching from previous accounting system, you can easily edit the amount to provide correct figures to start with.
That’s all clear. Thanks a lot!
I would really appreciate it if you could explain the same to me. I also had an over payment from one of my customer which later was refunded in the form of cash (Cr Account Debit Cash). When I refunded I showed it in books as Cr Cash - Debit Customer Advanced Payments) but overpayment is still shown on the customer’s invoice. What did I do wrong?
Have a look at Guides | Manager
It shows step-by-step instructions how overpayments by customers must be recorded.
Documentation is now found in the Guides. (Click on the top menu bar on Manager home page.) This one should help:
http://www.manager.io/guides/accounts-receivable/receiving-money-from-customer/
This link is stale. Is there a link to the right page for this topic in the guide?
Click on the Guides link on the top menu bar of either the Manager application, this forum, or the Manager.io web site. You will see a listing of Guide topics. Always find things that way, as links that may be posted in old forum threads go out of date quickly.