This transaction is used for manually entering receipts that are considered overpayments.
In most cases the Overpayment is created automatically when you enter an invoice payment that is larger than the outstanding amount.
If the receipt relates to an issued customer invoice, enter a Customer Invoice Payment.
If the receipt relates to the refund of a supplier credit note, enter a Supplier Refund.
The transaction can also be used for entering advances or deposits. Please note however that certain deposits received from customers require VAT to be declared based on the date the deposit is received. The Overpayment functionality does not currently facilitate this requirement.
Entering an Overpayment
The receipt should be entered as a Receive Money transaction. Navigate to the Banking tab and initiate the transaction from one of the following areas:
- Overview - click the Receive button for the appropriate bank account.
- Transactions - select the appropriate bank account and then click on the Receive Money button.
- Bank Imports - import a bank statement or process an incoming amount from an existing bank statement.
Proceed to complete the transaction as follows:
- Type: Select Overpayment from Customer.
- Date: The date that the receipt took place. This defaults to the current date unless you are processing a bank statement in which case it's the date provided by the bank for the line item.
- Contact: Use the drop down list to select the appropriate contact. This field is automatically entered if you are processing a bank statement using an import rule. If the contact has not already been set up, click on the Add New button to create a new contact.
- Reference: Enter any relevant information you may require e.g. cheque number.
- Description: Enter a description of the receipt.
- Amount: Enter the amount of the receipt. This field is automatically entered if you are processing a bank statement.
- Notes: Enter information applicable to the entire receipt.
Click the Save button to complete the Overpayment Receipt.
Allocating the Overpayment to an invoice
You may wish to allocate the overpayment to a new or existing invoice at a later date. Please see Allocate Overpayment to Invoice.
Overpayments from Customers will save values to the Accounts Receivable nominal account and therefore appear in the Aged Receivables report and Customer Statements.
Automatic overpayments created when an invoice is paid will result in two separate bank transactions being created. One line reflects the amount of the invoice/s allocated and one line represents that amount ot the overpayment.