Record an overpayment from a customer

How to record when you receive an overpayment from a customer. This includes using the overpayment to pay another invoice and paying a refund. You save the overpayment as a Payment on Account. Once saved, use it to pay another invoice or match to a refund.

When a customer has overpaid, you can still record the money you’ve received. Just match to your outstanding invoice or invoices as usual. We’ll then save the remaining amount so you can match to a subsequent invoice or refund.

We record the remaining amount as a special transaction called a Payment on account.

Enter a customer receipt

1. From Banking, open the relevant bank account.
2. Choose New Entry, then Sale / Receipt.
3. Enter the details of the Customer, Bank account, Date, Method and Amount.
   • Entering a reference makes it easier to track your receipt
4. Select the checkbox next to each invoice you want to pay.
5. Save the receipt. If there’s a remaining amount, choose to save it 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. See Allocating existing transactions.

Refunding the overpayment

Read record a supplier refund for steps on refunding the overpayment.

Customer receipts and payments on account

Customer refunds

Enter money out as a cash refund