Overpayment where cash settlement is allowed

[leyawillis]

Hi,<BR><BR>Can anyone please explain what the affect of overpayment has on cash settlement for a customer.<BR><BR>i.e. a customer overpays an invoice of which they are entitled to cash settlement (and of which they have taken prior to making the payment and still overpayed).<BR><BR>I'm about to take the first Simulation for Unit 1 and I found the above question in an old paper. I can't find it in the study books what affect this has ....... !!!<BR><BR>Hope someone can help :o)<BR><BR>Tnx<BR>L

[k83]

Wouln't the difference just be credited back!

[hellonwheels2]

Hello!<BR><BR>The difference would sit on their account until such time as an agreement is reached. <BR><BR>It could be a refund owing to the customer (in the way of a cheque/cash refund), or simply stays on their account until their next transaction, when they would owe that much less.<BR><BR>Hope that helps!<BR>Helenx<BR><BR>

[Mandy001]

If faced with this in an exam I would offer the choices (just to cover all grounds):<BR><BR>1) offer a refund/voucher<BR>2) Let the amount sit on their account<BR>3) negotiate a inter company contra thingie (where they knock the amount off your bill)<BR><BR>There might be an option four and five, but I cant think of that at the moment :D<BR><BR>Mandy