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How to record when you receive an overpayment from a customer. This includes using the overpayment to pay another invoice and paying a refund. You save the overpayment as a Payment on Account. Once saved, use it to pay another invoice or match to a refund.

The most common way is to create a journal entry to record the amount of the overpayment and the corresponding invoice number. Another method is to credit the supplier's account with the overpayment amount, and then debited the account for the corresponding invoice.

I am writing to you because I have been informed that I have been overpaid. I (am/was employed/engaged) by you from (enter date) to the (enter date) as a (enter job title) on a (enter job type - full time, part time or agency/casual) basis. You have stated that I have been overpaid by a total sum of (enter amount).

For Title II Social Security benefits, the time period is 4 years. Only in very limited circumstances, such as fraud, may SSA assess an overpayment beyond the above time limits. Note that this time limit applies only to the original determination that there was a benefit overpayment.

If cash accounting is used, the overpayment would be recorded as a liability under customer deposits or prepayments. Credit memo: A credit memo is effectively a credit note, or negative invoice. It's a way to acknowledge to a customer that they have a credit balance that will be applied to the next invoice.

Please pay us back if your benefit amount was more than it should have been. If you got a letter in the mail that says you got more money than you should have, please pay us back within 30 days.

Overpayment | Business English the act of paying more than is necessary or more than the value of something, or the amount by which someone has paid too much: Any overpayment will be treated as a payment of tax in advance.

I am writing to you because I have been informed that I have been overpaid. I (am/was employed/engaged) by you from (enter date) to (enter date) as a (enter job title) on a (enter job type - full time, part time or agency/casual) basis. You have stated that I have been overpaid by a total sum of (enter amount).

There are three approaches to handling an overpayment: Use a credit balance adjustment to apply the overpayment as a payment to subsequent invoices. Use a negative invoice charge to apply the overpayment as a credit to a future invoice.

Work With Your Employer to Fix the Situation It's best to simply work out a way to refund the overpayment in a lump sum, if you can. However, this may not be an option in all cases. For example, if no one notices the mistake until weeks (or months) later, you might not have the money readily available to return.