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How to write over payment invoice

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hey there Matt hull Quist here with the QuickBooks University I wanted to show you how to handle an overpayment in QuickBooks okay so this can happen it happens actually a fair amount you issue an invoice to a customer and its a certain amount and they overpay it for whatever reason you know they might just be looking at it wrong who knows okay so what do you do in that situation how do you record that in QuickBooks all right so lets go through that were gonna say lets go up to lets say we get a check in the mail for an invoice that we issued to a customer okay so were gonna just go to customers receive payments right here you can also do that on the home screen right here receive payments alright so well say receive payments and lets pick a customer okay well were gonna say Cristie Abercrombie and lets say that she paid us instead of three thousand one hundred and eleven dollars and twenty eight cents she paid us three thousand two hundred eleven and twenty eight cents okay

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Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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How do you show an overpayment on an invoice?

Explaining the invoice overpayment Explain the overpayment from the customer. Select the new transaction and then choose Other Money In from the Type drop-down menu. Explain the money as paid back to the customer.

Does a company have to refund an overpayment?

Regardless of the reason, an employee who is overpaid does not have the right to keep the overpaid amount and the employer is entitled to recoup it in full in a reasonable and timely manner. An employer must comply with IRS rules and procedures to properly recoup overpaid wages from an employee.

What are examples of overpayment letters?

I have been notified of an overpayment in the net amount of $X. XX from Company Name. I agree that an overpayment has occurred, and I knowingly and without coercion waive my right to dispute the overpayment. I agree to allow my wages to be garnished for $X.

Can a business keep an overpayment?

Businesses often issue overpayment refunds in the same format as the customer provided payment. For example, if your customer paid by check, you may return a check for the overpayment refund. If he paid by credit card, however, you can usually issue a refund directly to the card.

How long can a company keep an overpayment?

Timing- An employer can only go back to collect overpayments made in the 8 weeks prior to notifying the employee of the overpayment. An employer has up to 6 years to recover the payment, though in most cases the recovery time is much shorter than 6 years.

Can you write off overpayments?

If a customer has overpaid you, the overpayment would usually be allocated to the customers next invoice. It is, therefore, an exceptionally rare practice to write off an overpayment.

Is keeping an overpayment theft?

So, theres nothing criminal if you legitimately didnt realize that a company overpaid you though you still need to give back money you didnt earn. If you knowingly keep money that you know should not have been sent to you, you are committing theft by deception.

Can you keep an overpayment?

Can employers take back wages from overpaid employees? Both federal legislation like the Fair Labor Standards Act (FLSA) and state labor and employment laws give employers the right to recover an overpayment in full.

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