Account Keeping Plus – Administration, Bookkeeping, Compliance News & Tips MYOB Reckon Quickbooks Xero Software TrainingSmall Business

Making Business Books and Accounting Come Alive! MYOB Reckon Xero

MYOB – Overpayment of Retention – How do I deal with the overpaid retentions?

1 Comment


MYOB – Overpayment of Retention – How do I deal with the overpaid retentions?

MYOB – Overpayment of Retention – How do I deal with the overpaid retentions?

ClientA 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

Get a FREE 30 min answer to your query, and FREE ongoing email or phone support – No-one offers as much! Call and you also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia

Advertisements

Author: accountkeepingplus

Administration, bookkeeping and compliance for small business, and Self-Managed Super Funds (SMSF) Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, Free support MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

One thought on “MYOB – Overpayment of Retention – How do I deal with the overpaid retentions?

  1. A handy thing to know – great MYOB advice.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s