Handling Overpayments, Prepayments, Using Journal Entries

This guide is designed to help you smoothly apply prepayments and overpayments as payments toward invoices within QuickBooks Online and Re-Leased. By leveraging Journal Entries, you can efficiently manage these transactions, ensuring your financial records remain accurate and up-to-date.

Step 1: Creating a Journal Entry in QuickBooks Online

Begin by logging into your QuickBooks Online account:

1. Go to the Journal Entry section.
2. Create a new entry and fill out the necessary fields: account, debit/credit amounts, description, and associate them with the appropriate name and class.
3. Click Save and Close.

Step 2: Apply the Overpayment

When the time comes to apply the overpayment to an invoice:

1. Create another Journal Entry in QuickBooks Online.
2. Move the amount from the account used in the previous Journal Entry to the 'Accounts Receivable' account.

Step 3: Receiving Payment Against Invoices

Next, navigate to your customer page:

1. Go to the Receive Payment section for any open invoices.
2. You will be able to select the Journal Entry you created and apply it as a payment.

Step 4: Synchronize with Re-Leased

Once you've applied the Journal Entry in QuickBooks Online:

1. Sync the information over to Re-Leased to reflect the payment.

Step 5: Confirming Payment in Re-Leased

In Re-Leased, you can verify the payment:

1. Open the relevant invoice.
2. Observe the Journal Entry listed under Less Payment.

The invoice in Re-Leased should now indicate the correct payment amount, including the amount applied from the Journal Entry.

Refunding an Overpayment in QuickBooks Online

If an overpayment has occurred and needs to be refunded to the tenant:

• Process a Refund Receipt in QuickBooks Online.
• This refund will be synced to Re-Leased as a paid Income Credit Note.
• The refund will also be recorded in the Tenant’s History, maintaining visibility and accuracy in their account activity.