Overpayment To Supplier

This transaction is used for manually entering payments 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 payment relates to a supplier invoice, enter a Supplier Invoice Payment.

If the payment relates to the refund of a customer credit note, enter a Customer Refund.

The transaction can also be used for entering advances or deposits.

 

Entering an Overpayment

The payment should be entered as a Spend Money transaction. Navigate to the Banking tab and initiate the transaction from one of the following areas:

  • Overview - click the Spend button for the appropriate bank account.
  • Transactions - select the appropriate bank account and then click on the Spend Money button.
  • Bank Imports - import a bank statement or process an outgoing amount from an existing bank statement.

 

Proceed to complete the transaction as follows:

  • Type: Select Overpayment from Supplier.
  • Date: The date that the payment 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 payment.
  • Amount: Enter the amount of the payment. This field is automatically entered if you are processing a bank statement.
  • Notes: Enter information applicable to the entire payment.

 Click the Save button to complete the Overpayment.

 

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.

 

Notes

Overpayments to Suppliers will save values to the Accounts Payable nominal account and therefore appear in the Aged Payables report and Supplier 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.

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