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MYOB – How to deal with overpaid retentions

images/MYOBlogo2.jpgClientA regular client called me in for several issues – but the main one was that a customer had overpayment of Retention owed. In the Building industry a customer usually withholds an amount – say 10-15% of the Invoiced amount over, and only pays once the job is completed and all parties are satisfied – the Retention. The client calculated that an extra $10,200 over the $4,000 Retention, had been paid, and she had called the customer but they were sure it was correct – how to deal with it?

Answer Depending on the method you use – some create another invoice for the Retention amount, to be paid later, some just leave the invoice with the balance (Retention) still open, as in this case.

She would be checking her figures again, but no other jobs were outstanding, so it wasn’t several Retentions owed together either.

So I suggested just add another line and include details of the payment date and total and that $10,200 was over paid. Then she could Receive Payment to the invoice for the full $14,200 payment.

Then create ANOTHER invoice but with NEGATIVE$10,200 so it becomes a Credit Note/Invoice, save it, and email to customer.

Then in the Sales Register under the Credits tab, find the Credit, highlight it, then in the lower LHS you can “Refund” – this generates a Cheque, linked to the Credit Note, uses up the Credit Note and allows refund by manual cheque or EFT Transfer to the client bank account.

For more detail on how to handle customer overpayments – see MYOB Support Note HERE

Need Help? - Email i This email address is being protected from spambots. You need JavaScript enabled to view it. or call 0407 361 596 Australia

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Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
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