Over Payment for invoice
jamesT
Member Posts: 1
Forgive me, I am not an accountant.
How do I deal with Over Payments of Invoices. I have a regular customer that likes to pay when she has extra cash. So sometimes pays a little extra.
I have tried two different methods of accounting for this:
A - Record the over payment as one payment against the invoice. The Customer Statement works well and give the correct balance, but the last Invoice shows a payment is required when accually there is a credit balance. 
B - Split the payment and allocate to the invoice. The issue with this solution is the next invoice has not yet happened so how do I show this as a credit of the customer? An the Customer Statement is difficult to understand (and incorrect) as it does not show the total payment (or the split transactions in the correct order) or the credit balance at the end. I have tried to allocate the Uncatogrized Income to the Customer, also I do not yet have the next Invoice available to allocate the credit to. 
I would really appreciate some help with this issue. Thanks
Comments
Hello, I'm not from Wave but I'm a user like you.
I would suggest that you stick to method A, it does looks right to me.
Just consider that the balance column is an overall balance for the customer and not necessarily the balance on the invoice to the left. If you read the report like so, then it makes total sense. Thus, using this criteria, the row with the Dec 11 Invoice #247 indicates that at that point in time (Dec 11) your customer owed you R$1,645 and it does not mean that is the balance for the Invoice itself.
In report A the (R355) indicates that your customer has R355 to apply to future Invoices. Due to the nature of the account, credits show between ( ) and an amount without ( ) means that the customer OWES you that amount.
Hope this helps.
Thanks for jumping in, @hgomezc! You are right on all accounts.
@jamesT, as mentioned, the customer statement doesn't give you the status of individual invoices, but an overview of all of your dealings with that customer. If you want to see the status of individual invoices, you'll have to visit the Invoice page.
The problem here is that customers with overall credit balances can receive reminders to pay "unpaid" invoices so a matching of credits and debits is required via a "holding" A/C??
Although that isn't wrong, I don't really see a problem with that. If I have customers with unpaid or partially paid invoices, I want them to get reminders. But you don't have to send invoices to your customers if you don't want to, @altros. They're only automated if you make them automated.
Hi Mary thx 4 ur reply. Example a customer returns goods and we minus invoice him for say ($100) = his credit note. he buys something else for $50 and is invoiced. He will not pay the $50 as we owe him $100. How do we handle this please?
I just sorted this out.
I added a negative payment to invoice A for (50.00) from the incoming account (RENT) as cash, noting the payment as credit to carry forward.
I then added a payment for 50.00 to invoice B from the incoming account (RENT) as cash noting credit carried forward from invoice A.
You need to balance the incoming account (RENT) against your income account from the invoices. You will always note any outstanding credits there to carry forward as appropriate.