write off overpayments by customers

Stacey LettStacey Lett Member Posts: 19
edited June 2019 in Accounts Business Range
How do I write off overpayments from customers as the years have passed and have no contact details. I have tried GJ - Bank CR and Debtor DR.  It gives a zero balance on the left hand side when looking at customers window ..
but when you print out A/R ageing summary it still shows up.  Help ?


  • Shirley IngleShirley Ingle Accredited Partner Posts: 191
    edited April 2018

    Hi Stacey  Your entry would be for an overpayment Debit Accounts Receivable  and the Customer along the same line under the heading Name and the Credit would be Sales Income (or whatever Sales account you use) with Tax Code GST if you charged GST in the first place.

    The bank has nothing to do with this entry as the amounts will never show on your bank statement.

    Once you have made the entry, go to Receive Payments, enter the Customer, highlight the line you just entered (don't tick), then click Credits (bottom right) and then Done. You will notice when back in Receive Payments there is a Credit column now. The customer should now be sorted.

    At any time when you bring up the AR Trial balance and see a row of 0.00 this means you need to set the credit against an outstanding debit (invoice). This is done through receive Payments.

  • DiDi Member Posts: 29
    edited April 2018
    Hi Stacey, This is how I do it.

    Using a General Journal entry

    In the Account column use Accounts Receivable
    In the Debit column use the amount you are trying to write off.
    In the Tax column you will need to attribute tax if applicable
    In the Name column use your customers account name, number or however you identify your customer.

    Next line
    In the Account column use either an existing account (I opened a new account called Customer Writeoffs) as a sales account - this is because the written off amount when it is an overpayment is classified as income for taxation purposes.

    In the Credit column use the amount of write off so it all balances.

    I do the same in reverse when I need to write off customer bad debts except I allocate to an expense column the write off as it it an expense to business.

    I do hope this makes sense, Im in a bit of a hurry but thought I would try and assist.

  • Shirley IngleShirley Ingle Accredited Partner Posts: 191
    edited March 2018
    Hi Di  Just a point, you attribute tax to the Income account not the Accounts Receivable line (Balance Sheet).
  • StaceyL123StaceyL123 Member Posts: 11
    edited April 2018
    Hi Shirley,

    Sorry i don't understand the first paragraph instructions. Issue -  customer invoice generated in 2016 and overpaid by 40cents credit to be used later option selected. 

     Your second paragraph starts with..' once you have made this entry (what entry)? i went to receive payments but there is nothing owed and the credit doesn't show up when you click on 'apply credits' 

     i have about 8 to do.  Boss doesn't want to see them on the a/c Receivable report anymore.
  • StaceyL123StaceyL123 Member Posts: 11
    edited April 2018
    I tried your way too and the amount still shows up in the a/c Receivable summary.
    I wonder why this is so tricky to fix? thanks
  • StaceyL123StaceyL123 Member Posts: 11
    edited April 2018
    Thank you for your help but it doesn't work for me.  The amount is still in the a/c receivable summary
  • StaceyL123StaceyL123 Member Posts: 11
    edited April 2018
    sorry that reply comment above was for Di, whoops
  • John GJohn G Reckon Staff Posts: 2,283 ✭✭
    edited April 2018
    Hello Stacey,

    Please check your actions against our KB article on writing off customer amounts.  

    Hope this helps.

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