There may be times when you receive overpayments for open invoices. It is important that you process the overpayment transactions to reflect reality.
Suppose you have a customer with an outstanding invoice of $16,825.00 and you receive a check for $17,000.00 as payment.
- Navigate from Menu > Accts Receivable > Receipts.
- Enter the receipt as normal, but with these specifications:
- Record the full amount received in the Amount fields (e.g. $17,000.00).
- Apply only the total amount of the invoice to the invoice Amount column (e.g. $16,825.00).
- Click the Total Allocated Refresh icon (
). - Verify that the Apply Overpayment as Credit flag is marked.
- Save the receipt.
At this point, the receipt includes a line item for a credit memo the amount of the overpayment. You can carry the overpayment and apply it to future invoices or you can issue a refund.
