How to write off an old overpayment - Reckon Accounts Hosted

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  • Updated 6 months ago
Can anyone help? It isn't a small amount, but needs to be written off.
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Beth Zielinski

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Posted 7 months ago

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Shane, Employee

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Hi Beth,

If this a customer over payment, then you would do the reverse of handling bad debts: http://kb.reckon.com.au/issue_view.asp?ID=2114

Check with your accountant on this, but I would think its the reverse of the article above.

Create an income account called Overpayment WriteOff (or whatever you think is a good name).
Create a service item with the same name and link it to the income account you created.
Create an Invoice using that service item you just created, and make the amount the same amount of the overpayment you want to write off.
Go to Receive payments, select the invoice you just created, press Credits at the bottom and apply the overpayment to the invoice to pay it off.

The overpayment has then been written off.

Again please double check this with your accountant to make sure they are happy with this process and account being used.

If it was for an overpayment you made to a supplier, then create an expense account called Overpayment WriteOff (you can skip the item part if its for suppliers), create a bill for that supplier using that expense account, and the amount of the overpayment.
Then go to pay bills and use the credit created by the overpayment to pay the bill you just created.

The overpayment will have been written off.

Again, double check with your accountant.

Regards,
Shane.
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Beth Zielinski

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Thank you so much for your help Shane. This worked perfectly.