Customer overpayment into credit memo

Hello,

Here is an example scenario that pays your customer by AP Check and cleans off the AR document with a Customer Refund.

1. Receivables --> Payments and Applications

• Type:  Customer Refund type
• Cash Account:  For the Cash Account, do not use the actual cash account you are issuing the check out of.  Use a Cash Clearing account.  (the cash clearing account must first be set up in the GL Chart of Accounts and Banking --> Cash Accounts)
• Documents to Apply:  Add in the open document(s) you are refunding.  The type will either be a Credit Memo, Payment, or Prepayment that you have open for this customer
• Release the document
• This will debit Accounts Receivable and credit the Cash Clearing account.

2. If the customer is not already a Vendor, use (…) Actions to Extend Customer to Vendor.

3. Enter a Bill followed by a Check,  or enter a Quick Check. The cash account should be a real checking account from which you normally pay vendors. The other side of the entry (the debit on the Bill or the debit on the Quick Check) will be the Cash Clearing account used in the second bullet-point above.

• Print and release the check
• The resulting entry is a credit to cash and a debit to Cash Clearing, emptying the customer refund transaction out of cash clearing.

I don’t want to actually refund the customer though I want to turn it into a credit memo to be used at a further date.  Different scenario then above?

I believe that would work, thanks!  Sometimes the customer wants an actual credit memo to enter into their books.  

Hello - while I’ve been trying to solve the same request… I think this may be the easiest solution?

1. Apply the partial payment to the original invoice -- leaving a balance on account for that payment.

2. Create a Credit memo for the same amount as the over payment

3. Create a DEBIT memo for the same amount as the overpayment.

4. Apply the DEBIT memo to the outstanding cash balance.

I’d be interested in comments/feedback using this approach.

Is there any Way to get Notified about the Down payment /Overpayment Made by Customer  while Creating a New Invoice / applying a Payment  to New Documents ?