Overpayment of invoices (not as an advance on future invoices)

[Shane Litherland]

Hi Robert,

further to Maf's suggestions, I've tackled similar issues in a similar
manner (though mine were more usually getting overpayments correctly
recorded as prepayments, it highlighted similar aspects)

I think, if you are using A/P and invoicing (as I do), if you record the
extra payment when you process invoice, then that extra amount will be
remembered in A/P as a prepayment for the next bill, and I don't think
you can do anything to get it balanced out of A/P short of generating
(and then paying) a dummy invoice for the extra amount, and that seems
messy to me. Unless the client wants a receipt/invoice to show their
donation?
So as Maf suggested, processing just the right amount for the invoice
keeps A/P happy, and though it means doing a second entry by hand for
the 'donation', that's probably less headache than trying to convince
A/P reports etc that it doesn't have to remember the extra bit you
received! In the end, if you've still processed it as a txn from an
income acct to your cheque/banking/cash account then it should still
show in your reports as income, it just wouldn't be showing up in A/P as
a messy overpayment.

Regards,
Shane.