Go Over Payment Release For Free

When you overpay a supplier, you can still record the payment. Just match the payment to your outstanding invoice or invoices as usual. We save the remaining amount so you can match to an subsequent invoice or refund. We record the remaining amount as special transaction called a Payment on account.

Issue a Credit Regular customers will often choose to leave the money on account because it's easiest for both parties. If this is the case, the business must issue a credit to the customer's account. The amount overpaid on the invoice is recorded as a credit on the balance sheet, not in a revenue account.

Options for handling overpayments are to either refund the amount or establish a credit for it. The receiver cannot keep an overpayment, as it is neither revenue nor income. Account credits caused by customer overpayment are recorded as liabilities or contra-assets on the balance sheet until applied against an invoice.

Overpayment letter to employee template for immediate use You are receiving this letter because an overpayment has been issued to you in the amount of $X. XX due to: (State Reason Here). Please sign, date, and return the form below within X days. I have been notified of an overpayment in the net amount of $X.

Use a credit balance adjustment to apply the overpayment as a payment to subsequent invoices. Use a negative invoice charge to apply the overpayment as a credit to a future invoice.

If the invoice is from a regular supplier, the easiest solution is often to apply the overpayment to a new or existing invoice. Other options include refunding the overpayment or being given a credit note that you can allocate against a future invoice.

Option 1: Apply the credit to an invoice Select + New. Select Receive payment. Select the customer, then the credit and the invoice. Select another pending invoice and enter the overpayment amount in its Payment column. Select Save and new or Save and close.