Summary
How to record when you overpay a supplier in Sage Accounting.
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.
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.
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.