Solution: This article explains how to return a customer overpayment by check instead of posting it as a credit against their account.

Please follow the example below for assistance on this process, it uses Company 99 as the sample data.

Customer ACP1 was invoiced for $1,000 but accidentally paid $2,000 instead. Of this amount, $1,000 was applied to the invoice and the $1,000 overpayment was posted as a credit to the account. To return the extra $1,000, follow the steps below:

1. Create a negative cash receipt for $1,000.
2. Click Apply.

Click No to decline including this refund in bank reconciliation. This will later take place in Accounts Payable (AP) and there is no need to repeat it here.

• Click Manual and apply the negative cash receipt against the outstanding balance.

1. Open AP.
2. Create a payable. This will debit the cash account and credit the AP Control account.
3. Approve the payable and print the check.
4. Reconcile the check in bank reconciliation.

The overpayment has now been reversed and customer ACP1 has received their money back in the form of a check.

© Copyright Sage Software