Processing Customer Overpayments

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.

  1. Navigate from Menu > Accts Receivable > Receipts.
  2. 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). 
  3. Click the Total Allocated Refresh icon (). 
  4. Verify that the Apply Overpayment as Credit flag is marked.
  5. 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.