How to Make Refund on Invoice Overpayment Show Up in Customer Statement
Nike
Member Posts: 3
Hi,
Not an accountant, so this is a tad frustrating. A client overpaid on an invoice and I've made the refund of the overpayment. Let's call it $1,000 paid on a $900 invoice like in the Help Center article below. Here's what I did:
- Recorded the full $1,000 as a payment on the invoice
- Split the Income Transaction into $900 (categorized as the invoice payment) and $100 (categorized as a newly created "Client Overpayment Account" under Liability Accounts)
- Recorded an Expense for the $100 refund (categorized as Client Overpayment Account)
So my books balance, but the refund obviously doesn't show up on the customer statement, which I need to happen, so I can send the customer a record of the refund (since there's no sane way to do this). Even if I add them as a vendor, they still won't show up on the customer statement.
Does anyone know how to do this?
Looked through the applicable Help Center articles and Community answers, but no luck:
https://support.waveapps.com/hc/en-us/articles/360000278846-Accounting-for-overpayments
https://community.waveapps.com/discussion/1675/overpayment-and-underpayment
https://community.waveapps.com/discussion/672/how-do-i-deal-with-refunds-for-overpaid-invoices
Would greatly appreciate the help! Already spent too much time on this.
Comments
Hey @Nike, definitely understand the frustration here!
Because you've refunded the money back, there are a couple of options to clear that liability, but I think the easiest in this place would be to head to the original overpayment, and remove the split so that the full value ($1000) is now allocated to the $900 dollar invoice. You could instead create a journal transaction which moves the liability back into your business account, but this wouldn't show as well in the Customer Statement.
Now that the split has been removed, record the $100 expense out of your bank account (or locate the one you've already made/imported). Now, all you need to do is categorize this expense as 'Refund sent for an invoice in Wave'. Wave will then prompt you to choose which invoice. Once saved, everything should be settled up.
Let me know if this works/doesn't work, or if I can clarify better!
Hi, am having issues with this as well! I just tried it but for some reason the refund adds up to the balance
inteast of substracting... I thinks there's a major glitch there. I did exactly that, made a payment transaction then a refund transaction, and even thouhg it shows up as negative payment (payment amount shows up in parenthesis) in the grand total is adding up the amount instead of substracting it.. need help with this pronto!!!
Hey @Joelrodriguez! Can you post a screenshot of what you're seeing in that payment history of the invoice? Feel free to blur out any sensitive information. I'd love to know a little more about your workflow here, and what you're seeing.
@ConnorM
Hey @Joelrodriguez this definitely looks like a strange one! Can you reach out to me via DM? I'm thinking there might be some errant transactional information affecting this invoice, and I'd love to take a deeper dive into this together.