How to handle Overpayments

Overview

When a homeowner overpays their account, RunHOA provides a systematic way to handle the overpayment by recording it as a liability and issuing a refund if necessary. Below is a step-by-step guide using an example where the assessment is $300, the homeowner pays $350 (overpaying by $50), and the $50 is later refunded.

Step 1: Create a Liability Account for Overpayments

1. Check Existing Accounts:
   • Navigate to the Liabilities section in RunHOA.
   • Look for an account named “Overpayments” under “Current Liabilities.”
2. Add a New Account if Needed:
   • If “Overpayments” does not exist, click Add New Account.
   • Account Description: Enter “Overpayments.”
   • Opening Balance: Set it to $0.
   • Click Save to create the account.

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Step 2: Recording the Overpayment

1. Go to the Deposits Module:
   • Navigate to the Deposits section in RunHOA.
2. Enter Deposit Details:
   • Bank Account: Select the appropriate bank account (e.g., PNC Bank Checking).
   • Date: Enter the date of the payment.
   • Name: Select the homeowner who made the payment (e.g., John Smith).
   • Total Amount: Enter the total payment amount (e.g., $350).
   • Memo: Add a note (e.g., “Overpaid by $50. Will send a refund check.”).
3. Allocate the Payment:
   • Account Category: Select the assessment category (e.g., Annual Assessment).
   • Amount: Allocate $300 to the assessment.
   • Add Splits:
     • Category: Select “Overpayments.”
     • Amount: Enter the overpaid amount ($50).
4. Save the Deposit:
   • Click Save to finalize the deposit.
5. Verify in Liabilities:
   • Navigate to the Liabilities section.
   • Confirm that the overpayment ($50) is recorded under “Overpayments” in the liability totals.

Step 3: Refunding the Overpayment

1. Go to the Withdrawals Module:
   • Navigate to the Withdrawals section in RunHOA.
2. Enter Withdrawal Details:
   • Bank Account: Select the same bank account used for the deposit (e.g., PNC Bank Checking).
   • Date: Enter the date the refund check was cleared
   • Name: Select the homeowner (e.g., John Smith).
   • Total Amount: Enter the refund amount ($50).
   • Memo: Add a note (e.g., “Refund Check Cleared”).
   • Check Number: Enter the check number if applicable.
3. Allocate the Refund:
   • Account Category: Select “Overpayments.”
   • Amount: Enter the refund amount ($50).
4. Save the Withdrawal:
   • Click Save to finalize the withdrawal.
5. Verify in Liabilities:
   • Navigate to the Liabilities section.
   • Confirm that the “Overpayments” liability is now $0, and the refund has been properly recorded.