Still not clear on credit for overpayment!

[5StarAwards]

You closed the thread so I'm starting a new one.

Your comment that left alone BW will apply the outstanding credit would be fine if it had been applied as a credit but applying in-store credits is NOT very intuitive! I did the F1 and I looked at the help section and I am still confused and don't know what to do. I look at the balance on my customer's account, and, yes, if you go by the statement it shows the correct balance, but the INVOICE does not show a credit, and I don't know how to apply the overpayment amount to the outstanding balance.

The whole posting a payment batch is also very confusing. I have never done this and I can't figure it out. So if a customer pays for an order before the job is done it should be posted as a batch? I have just been applying the payments to the job. I am very confused.

[M. David Matney]

Payment batches provide a way for you to create a batch of checks. Lets assume you received 30 check payments on invoices today. Take those checks and divide them into 3 stacks of 10 checks.

1) On an Adding Machine, total up the checks in stack 1 (we will call this batch 1)
2) Create a new payment batch and put in the expected batch total from adding it up on the adding machine
3) Post each check to the appropriate account and to the appropriate invoices on the account
4) Close the payment batch which causes posting of the batch to the invoices

Then start a new payment batch for stack of checks #2 and repeat steps 1-4 for the 2nd stack of checks, same thing with the third stack of checks

When all done posting those 10 checks the expected batch total should equal the actual batch total. This is a checks and balance system. If the totals do not match, then either the adding machine calculation done in step 1 was incorrect, or there is an error in step 2 of the posting

How many checks you include in a batch is up to you. You could create a single payment batch for all 30 checks. The purpose for putting them in small batches is to help you find an error if the actual batch total and the expected batch total do not match. Instead of trying to find the error in 30 checks, you only have to look through 10 checks. How you batch is up to you.

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In-Store credits are created when there is an overpayment condition on a payment batch. Posting a single payment to an invoice from the Maintain Invoice Screen DOES NOT create an instore credit if there is an overpayment. Instore credits ONLY get created from payment batches.

Lets assume Company A mailed you a check for $500, however they only owe $400. When you post the payment to company A, you will select the invoices to post the check to which will total up to $400, leaving a $100 overpayment.

When the batch is closed, $400 of the check will post to invoices and an instore credit in the amount of $100 will be created.

This instore credit will be AUTOMATICALLY applied to future invoices when they are created. The key here is "future" invoices. Current invoices with a balance due will not be effected, only future invoices

In addition, you can maintain the instore credit and manually post any monies on the instore credit to:

A) an order
B) an invoice on the same customer account
C) Transfer the money to another customer account

the instructions on how to manually post payments from an instore credit are found in the help text.

Press F1 for help and under Customer accounts > Maintain Customer Account > In-Store Credits you will find detailed instructions on transferring money from an instore credit to either A, B or C as indicated above.

If you do nothing with the instore credit, then the next time an order is direct billed, upon direct billing, a review of instore credits is done by Order Manager and any balances left on instore credits will be posted automatically to the invoice when the invoice is created, until the instore credit balance is depleted to $0.00

Hopefully this helps.

[Becks2481]

Is there a way to have a pop up that tells you the Credit will be applied? In our office I do most of the billing, so our front store employee doesn't necessarily know who's paying for what if the order has been directly billed. Sometimes a coach will come and pay with a credit card for an invoice that has already been billed out. Then we get a check for the same amount from the school. I always contact them to see if they want the check returned or applied as a credit to the account. But then, say the soccer coach comes in, orders, order gets billed out but the wrestling credit gets applied to the soccer invoice Automatically but it should not have been applied. There is no way to reverse that once it has happened is there? I tried deleting the credit line item but it does not reverse the application of the credit. Credits are a very confusing thing and it seems like there is no reversing it once it is done and at times credits will be lost.

Another quick question: We had a customer that we had a trade agreement with and after a few months they built up a good amount of credit. Then they went out of business and are no longer able to be contacted. What should I do with the credit amount shown? I thought of creating an invoice for the same amount but I don't want that to affect the sales numbers. What do you recomend?

[M. David Matney]

I always contact them to see if they want the check returned or applied as a credit to the account. But then, say the soccer coach comes in, orders, order gets billed out but the wrestling credit gets applied to the soccer invoice Automatically but it should not have been applied. There is no way to reverse that once it has happened is there? I tried deleting the credit line item but it does not reverse the application of the credit. Credits are a very confusing thing and it seems like there is no reversing it once it is done and at times credits will be lost.

The resolution to this is to separate out the customer accounts. If you have multiple departments who needs to keep separation their invoices and account balances you should set them up as multiple accounts. For instance, lets assume a university, I will make up a university named "New York University" (although this may actually exist) and this university has 3 departments that buy from you and each department has its own payables department, thus their invoices need to be kept separate:

You will in this case have 5 customer accounts setup similar to:

• New York University - Presidents Office
• New York University - Deans Office
• New York University - Student Union

When a check is received for the presidents office, any overpayments belong to the presidents office, same with an overpayment of deans office, overpayments go onto the deans office customer account.


Look at a customer account as a credit card account, in essence you are extending credit to a person or organization. If you have a little league that you bill, and the little league does all its accounting out of a single payables, then they will be paying the bill using a check out of the same bank account. If it needs to be kept separate, then set them up as separate accounts.

[M. David Matney]

Another quick question: We had a customer that we had a trade agreement with and after a few months they built up a good amount of credit. Then they went out of business and are no longer able to be contacted. What should I do with the credit amount shown? I thought of creating an invoice for the same amount but I don't want that to affect the sales numbers. What do you recomend?

What to do with it really depends upon laws in your state. We are not qualified to give advice on what to do with the money as you may need to refund it to the bankruptcy court, or it may need to sit for a certain time at which time it becomes unclaimed, etc. I would consult your CPA on what to do with the money.

In BizWizard Order Manager, the credit exists, because you received the money, thus there really isn't anything you can do until you refund it to someplace. The reality is, the money was received and it has been deposited into your bank account, thus the credits existence is still accurate. It could potentially sit there indefinately, but what to do with it in BizWizard really is going to depend upon what your CPA tells you to do with the money.