Refunds and overpayments

[Jeff Kletsky]

It's often considered as "unrealized income" since GAAP usually doesn't let you "count" income until you have delivered your side of the contract. "Prepaid expense" is the similar concept, where you've paid for something, but not gotten/used it yet.

Your accounting basis will determine how you need to account for these.

Jeff
----- Original message -----
> I guess overpayments are rare, however.
>
> I have a customer who's just paid me, not only what they owe but an advance on
> the next job however, it 's too much (?) so I will need to refund some of the
> money and have it show up correctly in customer->Report.  I can do a transfer
> from bank account to accounts_receivable which corrects bank and receivable
> but this does not solve the customer report problem.  Invoices do not accept
> negative amounts so cannot do it that way.
>
> I could just keep it I guess. :)
>
> It led me to thinking though, can I set up a customer who is also a vendor. ?
>
> Mike
>
>
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