How do I handle an overpayment? The owner of the company charged items on the company credit card. His secretary accidentally submitted the receipts as expenses due to him. Subsequently he received a check that was not due to him. He has a new expense report that he submitted for reimbursement but since he was over paid, he will not get reimbursed. How would this be handled in QuickBooks?
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Go to Vendors > Enter Bills
, select the Credit
radio button at the top right above the vendor name, and enter in all the expense accounts you accidentally paid him for. This will create a credit on his account, which you can use against his new expenses.
Enter the bill for the next expenses in Vendors > Enter Bills like you normally do. Then go to Vendors > Pay Bills and select the bill for the new expenses. You should get a message telling you that the vendor has a credit, if not click the Set Credits button to apply the credit for the overpayment to the new bill. If the new expenses are higher than the credit, you can pay the remainder due like you normally would.
This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth is the president of The QB Specialists, an Intuit Premier Reseller that offers huge savings and expert advice on QuickBooks POS and QuickBooks Enterprise. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks POS and QuickBooks Enterprise and has provided expert QuickBooks help to thousands of businesses all over the world since 1996.
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