Overpay a supplier

Solution Properties

Solution ID:

222001000101095

Last Modified Date:

Tue Jul 21 13:21:58 UTC 2026

Taxonomy Path:

Case category//How do I...//processing

Author:

[email protected]

Overpay a supplier

Description

This includes using the overpayment to pay another invoice and receiving a refund from your supplier. You save the overpayment as a Payment on your Account. Once saved, use it to pay another invoice or match it to a refund.

Cause

Resolution

Enter the supplier payment

From Banking, open the required bank account.
Choose New Entry then Purchase / Payment, then select the Supplier Payment tab.
Complete the details of the payment.
- For a new supplier, choose Add a supplier from the dropdown list
- To change to a different bank account, choose the new account from the Paid From Bank dropdown list
- Add a Reference to help you track the payment and match it with your bank statement
Enter the Amount paid.
Leave the amount field blank for automatic calculation of the total payment from the invoices paid.
Choose the invoices you want to pay and Save.
Select Yes, when prompted to save as a Payment on Account.

NOTE:

If you can't find the ledger account, go to Settings, Business Settings, then Chart of Accounts. Select the ledger account and go to the visibility section. Select the checkbox next to the area you want the ledger account want found, then select Save.

Use the overpayment to pay subsequent invoices

The Payment on account will remain outstanding until you decide what to do.

If you want to use the overpayment to pay a subsequent invoice, then allocate the payment on account to the relevant invoice or invoices. Follow our guide on how to allocate existing transactions.

Refund the overpayment

If the supplier sends you money back, you can refund a supplier payment on account.

Steps to duplicate