If a customer pays for the same invoice twice, should the customer be informed?
I say yes. If you become aware of the double payment when posting the customer’s second remittance, I would double check your records to be certain you are not owed money from the customer and would then inform the customer. If the check was sent in error, I would photocopy the check, document on the photocopy what had occurred, and then return it to the customer.
If you did not notice the double payment when processing the customer’s remittance, the customer’s accounts receivable record will show a negative amount due for the sales invoice and might even show a negative amount due from the customer. If your company mails statements to its customers, the customer should be able to see its double payment when reviewing the statement.
About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.He is the author of the 2010 Master Accounting Download Package which has been praised for it's ability to simplify accounting in a way that anybody can understand.
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what is the livrage.
Yes.
The resulting credit balance on the invoice would be considered a negative accounts receivable, in other words, a liability. If the funds are held which are not due, the company must report them to the state as unclaimed property after a certain time frame (depending on state rules).
Of course! You inform the Customer, explaining your findings & offer a credit or return of the funds.
Not only is this good for balancing the books, It is also Ethically & Morally apropriate