We have a client who received a double payment for an invoice in a previous month. Their customer wants to keep that prepayment/double payment on file for future use. A credit memo was created, but there’s nothing to apply it against, so bank rec is out of balance for the month in which the double payment was received. They are thinking of creating a “temporary” invoice to which they can apply the payment so that bank rec remains in balance. Then, when their customer want to use that prepayment to satisfy either new or existing invoices, they would reverse the “temporary” invoice, creating a new credit memo, then apply the new credit memo against the desired invoices. Does that make sense or can anyone suggest an alternative solution?
Recording a customer prepayment/overpayment to resolve bank rec issue
+18
Hello,
I recommend reversing the Credit memo with a Debit Memo and enter the duplicate Payment on their customer’s account as a Payment on Account (a Payment document with nothing listed on the “Documents to Apply” tab).
The Bank Reconciliation statement may then be completed normally, and the payment may be applied to the customer’s next invoice.
Laura
Userlevel 1
Thanks, Laura02! I’ll recommend this to them.
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