Handling Overpayments

Occasionally a customer overpays an invoice. For example, if they were invoiced for £10.00, they may accidentally pay £12.00. If this occurs, please use the following process:

Start by creating an invoice against which the overpayment can be allocated

1. In the Invoices module, use New Invoice to create a new invoice to the customer. Select a range of dates such that no bookings will be added to the invoice. This will create a blank invoice for the customer.

2. On the invoice, use the Add Invoice Line button to create a new line for the payment. Enter “Overpayment” as the Description and the amount of overpayment as the Amount.

You do not need to send the invoice if you don’t want to.

Now we need to balance this invoice by creating a credit.

3. In the Invoices module, use New Invoice to generate a second new invoice to the customer exactly as you did before. On this invoice, use Add Invoice Line and enter “Credit for overpayment” as the Description and the amount of the overpayment as a negative number.

Important: If you sent the invoice at step 2, you must also send the invoice at step 3. Equally, if you did not send the invoice at step 2, you must not send the invoice at step 3 either.

4. Enter the Payment. It should allocate to the original invoice and also to the first invoice you created.

Next time the customer makes a payment, it will allocate to the credit invoice to offset the overpayment.

Notes:

  • You may need to manually adjust any allocations the system makes when entering payments to ensure the payment is allocated how you need.
  • You can use the Statement of Account and the other financial reports in the Reports module to keep track of your customers’ accounts.