Posting problem when Refunding to client

If a customer overpays on their account we apply what is needed to clear their bill and leave the rest as unapplied. We then do a refund, cut a check and all is apparently in balance.

At the end of the month our balance sheet shows a balance in the account "Checks to be Deposited" in the inverse amount of the original payment. It doesn't appear to always happen.

Is there a tried and true procedure to accept a check which is too large for the amounts owed and then refund the difference and have all portions post correctly? Any ideas what steps we are missing or getting out of order to cause this?

Any thoughts would be appreciated.

 

Jeff Wyatt
McMahon Law Firm
Abilene, Texas

Does having run a bill for the client, after issuing the refund, make a difference? I suspect that something is not fully applied until you run a bill or manually go in the payments screen and do the apply.