An apparent customer overpayment needs checking before the debtor review
Check a supposed duplicate receipt before treating it as spare cash or issuing a refund. Keep the customer balance, bank movements and refund approval connected.
Corporate Recovery Partners
01 / 06
The refund request arrives before the account is checked
At the debtor review, one customer account shows a credit while other invoices remain overdue. The customer says it paid twice and wants an urgent refund. Before relying on the higher bank balance or sending money back, check what the entries mean.
Establish what actually reached the business account and which invoices the receipts cover. The apparent surplus may be a duplicate bookkeeping entry, a payment for another job or a genuine overpayment. Each changes the debtor picture differently.
Compare the bank dates, amounts and references with the invoice and remittances. Check whether one transfer covers another job or whether the apparent duplicate is a bookkeeping entry rather than a second receipt.
Ask your bank about any uncertainty over the transaction’s status. Do not rely on a pending display as a final answer.
Use an established customer contact to verify the request, especially where the requested account differs from the payer information. Refer unresolved differences to the bank or your adviser.
business.gov.au recommends verifying payment requests through contact details you already trust. Applying that discipline to an unusual refund request is a practical safeguard; it does not settle a disputed entitlement to the money.
Keep the refund linked to the original transaction
Once the position is confirmed, record the amount authorised, reason, recipient and approval. Have your bookkeeper make the appropriate entries and retain the supporting correspondence.
Do not erase the original payment simply to make the account look tidy. The record should explain both the receipt and the refund.
An unexplained surplus in the bank is not automatically additional sales income. Resolve its purpose before relying on it to cover another bill.
If there is a dispute about retaining or refunding the money, seek advice on the actual agreement and circumstances. Do not invent a right to keep it because another invoice is overdue.
Send a concise reconciliation showing the invoice, payments, refund and remaining balance. That gives both sides a common record and reduces the chance of another refund request.
If the check reveals a wider account dispute, bring that reconciliation to CRP. Keep the refund question clear rather than mixing it into unrelated debt negotiations.
