I'm sure this is a nice "problem" to have, but I still don't know how to handle it. I use Quickbooks (the online version) as my accounting software. I have invoiced three different clients (for three entirely different services), and all three have paid more than the invoiced amount.

How do I record this? I'm thinking I record part of the payment as fee for service and the excess amount as a sort of gratuity or bonus? Or do I change my invoiced amount to reflect the actual payment received?

Charlotte Flowers
JUSTCALLCHARLOTTE

Were the overpayments by mistake or were they a bonus?

If they were a mistake, then I would post the payment as usual and leave an open credit on the account to be applied to future invoices.

If they were a bonus/gratuity then I would just create another invoice to apply the overpayment to. You can code it however you like, either as a bonus, misc. income or add it to your regular income account. It's income either way, so how you code it is just for you and how you want to track various types of income.


BTW.. if they were bonuses, then congratulations... you rawk!

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Rebecka Melson ~ Virtual Business Services

I would record the amount paid and have the overpayment calculated as credit toward future work. If no future work is planned, I would refund the difference.

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Lorri Morin, CPVA
www.virtualsynergy.net

I agree (unless it was specifically offered to you as a bonus) - I know many people will overpay their monthly bills by a smidge either to keep checks at a rounded amount or to offset the following month.
If I overpaid our ISP and they pocketed the 'extra' I'd be pretty peeved

If it is a bonus then that's wonderful - I've rec'd holiday bonuses from clients but never a consistent overpayment just because I'm fabulous!! LOL

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Thanks,everyone. I wasn't too clear before, but you all covered all the bases, so I now know what to do. What I meant the three clients deliberately overpaid (I guess they didn't think I charged enough!). So I will credit the amount of the actual invoice towards that invoice...and create another invoice to cover the overage.

Originally Posted by CFlowers

Thanks,everyone. I wasn't too clear before, but you all covered all the bases, so I now know what to do. What I meant the three clients deliberately overpaid (I guess they didn't think I charged enough!). So I will credit the amount of the actual invoice towards that invoice...and create another invoice to cover the overage.

You can really confuse yoruself by creating another invoice for the bonus amount. You could just create another income sub account and call it bonuses.

I would speak with your clients to see about their reasoning for overpaying. Then go from there as to what you do. If they gave it as a bonus then wonderful, if not then let them know you will either credit their account or refund the excess amount.
Thanks,
Heavenlea

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Heavenlea www.meticulousassistance.com

I would also speak to the clients and make sure the overpayment was a bonus. If it was an overpayment then apply to their next invoice and if it was a bonus then create an invoice for the "bonus" items and apply there. Either way I would get clarification from all three.

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Lee Drozak
My Office Assistant

I agree that you want to get clarification from the clients about the overpayment. In doing so, I think it will show the clients that you're trustworthy and open about such issues. It can only play in your favor to keep the communication flowing about such things. Good luck!

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Shawna

I had a client overpay, but after speaking to him it turned out to be a holiday bonus. WOOHOO! Hey ya never know! It was a couple hundred bucks too.

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Rhonda Parker
www.VirtuallyYours925.com