Wednesday, March 28, 2012

QuickBooks: Credit A Customer For Underpayment

“Can you help me? I recently got paid for a long overdue invoice. I was so happy to have gotten paid that I did not worry that the customer paid it short. The total invoice was for $2,452.05 and the check was issued for $2,450.00. I don’t want to bother trying to collect the difference of $2.05. What is the best method for clearing the balance due?”

Most people would think that changing the original charge would be a good way, but I happen to disagree. I think that leaving the original amount shows that true effort of work for which you charged.

There are two alternative methods for clearing this balance that will keep the original information intact.

One would be to create a discount line on the original invoice and put the information in the description line that the discount is to offset the unpaid balance.

Another is to create a credit memo for the balance due and then apply the credit to the unpaid invoice.

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