How do you handle an over payment on an invoice?

When a customer pays more than the invoice they received, there are a couple of different ways to enter this into iPoint depending on the accounting method your company has adopted.

Standard and RFP-Liability invoices

1. Open the Accounting module
2. Select Payments
3. Click the New button
4. Enter the payment details, including customer, method, amount, date, and any other notes.
5. Choose the invoice(s) being paid from the list by placing a checkmark in the box near the invoice date.
6. The system will apply the payment to the invoice(s). Any balance remaining of the payment will be displayed as a Payment Not Applied
7. Click the Save or Save & Close buttons.
8. The payment not applied will remain on the customer’s account and can be applied to future invoices.
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Now, if you want to refund the customer the credit on their account, rather than holding it to apply to a future invoice, you’ll do the following.
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1. In QuickBooks, locate the credit on the customer’s account and click the Use credit to give refund button – remember, all payables occur in QuickBooks, so we don’t have that functionality in iPoint.
2. In iPoint, create an invoice for the amount of the customer’s credit refund. You’ll sell a miscellaneous item set up in the Items module. In the description, write something like “Refund performed in QuickBooks on check #12345.”
3. On the payment detail, apply the credit balance in iPoint. This should match the amount of the invoice, effectively zeroing out the balance.
4. Now, click the QuickBooks button on the invoice and check the Do Not Sync checkbox.
   

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RFP-A/R invoices
If you are using the RFP-A/R accounting method (as defined in Settings > Module Settings > Proposals > Accounting tab), then the process is a bit different because payments applied to RFP invoices are actually creating an A/R deposit against an estimate in QuickBooks on the customer’s account rather than paying off an invoice directly.

If the payment is paying multiple RFP invoices:

1. Open the RFP invoice from the Accounting module. Note this is not the payment screen.
2. At the bottom of the invoice, click the green New Payment/Credit button
3. Enter the payment details. HOWEVER, only apply the amount of the payment that is not greater than the Payment Request.
4. If the remaining balance is for other existing RFP invoices, repeat steps 1-3 above. Continue doing this until the payment is completely applied to RFP invoices.
   • As a rule of thumb, if the customer used check #12345 for three different RFP invoices, enter the check number as 12345a on invoice #1, 12345b on invoice #2, and 12345c on invoice #3. This will help you reconcile your deposit easier in QuickBooks because you can match the check number together to equal the total actual check.

If the payment received is for an amount greater than the RFP sent to the customer

1. Delete the original RFP invoice in iPoint and the corresponding estimate in QuickBooks.
2. Recreate the RFP invoice in iPoint for the amount of the payment.
3. Apply the payment to the RFP invoice using the green New Payment/Credit button at the bottom of the invoice.
4. Alternately, you could create a second RFP invoice for the difference between the amount of the payment and the amount of the original RFP.
5. Then follow the payment steps outlined in paying multiple RFP-A/R invoices section above.
   4. The customer has paid for multiple RFP-A/R invoices in one payment. How do I enter that in iPoint?
   One of the drawbacks of using the RFP-A/R accounting method is that you cannot automatically apply a single payment to multiple RFP-A/R invoices. So what do you do when that situation arises? You’ll enter the correct amount on each invoice manually, with the total of all invoices matching the total of the payment.
   

Let’s look at this example.

Open Invoices

• RFP-A/R Invoice #12345 = $4,000
• RFP-A/R Invoice #34556 = $3,000
• Service Invoice #77777 = $129.95
  

Customer payment

• Check #888 = $7,129.95
  

1. Open invoice 12345 and enter a manual payment of $4,000. In the check reference field, type 888A. (The A signifies that this is part of a bigger payment. You might also enter a comment so you’ll remember what you did later.)
2. Now open invoice 34556 and enter a manual payment of $3,000. Reference check number 888B. (The B lets you know this is a second part of the original payment.)
3. Finally, open service invoice 77777 and enter the manual payment of $129.95 with check number 888C.
4. Now, when you sync the paid invoices to QuickBooks, they will all be paid and reference the correct GL accounts.
5. When you record your bank deposit in QuickBooks, you’ll have three checks (888A, 888B, and 888C) corresponding to the single check #888. Just be sure you grab all three of those check numbers when you make your deposit.