Acct Scenario-Entered incorrect A/R payment amount.
Posted: Fri Sep 01, 2017 1:28 pm
What are my options to correct the following scenario?
Example:
Your option to correct this is to issue a general credit for the entire invoice ( yes, even though the amount on the invoice
is correct) and rebuild the invoice, post to customer's receivable account and be sure to enter the correct amount of the payment.
Example:
- Customer's invoice total for repairs came to $203.59 and was posted to their Receivable account.
- Later, customer sends a check payment for the entire amount but the payment amount was inadvertently
entered as $205.39 when it should have been entered as $203.59.
- Unfortunately, the shop did not notice the mistake until after they had deposited from cash drawer to bank then reconciled bank account
- Now the customer's Receivable has a credit, indicating that the shop owes the customer $1.80.
Your option to correct this is to issue a general credit for the entire invoice ( yes, even though the amount on the invoice
is correct) and rebuild the invoice, post to customer's receivable account and be sure to enter the correct amount of the payment.