I have an overpayment from customers. QB allows for credit or refund to be made. However, we do not refund little amounts Neither do our customers want to deal with little amounts. How to clear the overpayment/credits? Underpayments are easy to clear as bad debts. Overpayments are hard to clear or it is not clear how to clear it them.
Couple of ways you could do this. One would be to just add an item to the invoice when payment is received so that the invoice total is the same as the payment. Say the invoice total is $12.99 and the customer paid $13. You could add an item called extra payment to the invoice so it would total $13.
The item called extra payment would point to an income account. Since the amounts would be small, I'd just select an income account. If you wanted to track these overpayments, you could pull an item report to see how often you used this item.
If you did not modify the invoice or did not want to modify the invoice at the time payment was received, you could create a new invoice for the extra amount using your extra amount item and apply the credit to that invoice. Now your customer's balance is zero.
Hopefully this does not happen often and you can use one of these methods. Several people have wondered about handling these small overpayments. I am not aware of anyone coming up with a great way to handle this.
