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Kristine2012

What is the best way to handle overcharging a customer?

SOLVED
Posted By

A couple of our project managers are reviewing hours billed on particular project, and these hours have already been invoiced back to the client over a number of invoices spanning the last part of 2015 and into 2016.

The project managers are now thinking that some of these hours should not have been billed back to the client, and they are wondering how best to reimburse the client for those wrongfully charged hours.

What is the best way to accomplish this?

Should I go into all the invoices to see what shouldn't have been billed, item by item? Or, should I just create a payable for that client so I can print them a cheque for the exact amount the project managers are looking to reimburse the client by?

I know it would be tempting to say to generate a credit memo for them, however, our economy is not doing well and so I suspect there will not be a lot of future invoicing to this client.

Thanks,

Kristine

  • 0
    I would still suggest issuing a credit invoice - it may encourage the client to give you some work to use up the credit, at a later date a cheque could be issued if no further work comes in.
  • 0 in reply to Smith and Co

    I suppose that could still be an option. I'll suggest that to the powers that be and see what they think... there's always hope that the economy will turn around and maybe that approach will appeal to their sense of optimism.

    I've not done a refund cheque to a client before in Sage 50 and am struggling with wrapping my head around how to do that. From what I've read thus far, it seems one needs to do a 'negative' invoice for that client, and then hand write a cheque for that amount. I can't seem to find information around printing a refund cheque, that is, it seems the only way to print a cheque is from within Sage 50's A/P module.

    Thanks for the reply, smithco :)

  • 0 in reply to Kristine2012
    verified answer
    That is true re printing a chq from within Sage. One workaround would be to create a vendor using the customer name then do an 'invoice with payment', print off the chq but do NOT post it. Close the module then go back in and delete the 'supplier' as there will have been no transactions associated since you did not post it.
    Then post the cheque in the customer's receipt journal against the credit invoice which will credit the bank and debit A/R.
    Whether you decide to refund the customer immediately or later you will still have to create a credit invoice anyway to offset the revenue even if original revenue is in the prior year. Your credit invoice will be dated this year but you can reference the original invoice nbr(s) and date(s) and reasoning in the description column (and that will print out as well when you print the credit invoice).

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