Thanks for following this thread, smartin1124.
You’re correct in creating a liability for the prepayment. Since you’re using a two-part system, I suggest consulting an accountant for further assistance. They can recommend how to handle this type of situation. This also ensures your check register has an accurate record (whole payment).
Here’s a helpful reference that will guide you on how to provide a customer credit or refund. It’s scenario-based, so select the solution that suits your situation: Give your customer a credit or refund.
Additionally, this article contains resources on how to handle sales and other customer-related tasks. Make sure to choose the topic to view the complete information: Self-help guide.
Click the Reply button and post a comment if you have any additional questions. I’ll jump right back in to answer them for you. Have a good one.
