How do I add an overpayment by a customer to their account for payment on future invoices?

Roseanne_H · ‎July 13, 2020

I'm a newbie to using any accounting software so please bear with me. I have a customer that has paid money to be added to his account for future invoices that may occur. He has an outstanding invoice of £82 and has paid £600 so when I go to match this transaction on the banking page I have £518 that I'm not sure what to do with. Please help.

John C · ‎July 16, 2020

Hi Roseanne_H When you select find match and select the invoice that the payment is for you then select resolve the difference. Enter the customers name in the Payee field and in the category field enter/select the Debtors/accounts receivable account. you will have to enter a VAT code, No VAT (sales), > save. The difference/overpayment will then appear as a deposit on the customers account which you can use as credit towards another invoice by selecting receive payment on the invoice and ensuring the deposit is attached.

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John C · ‎July 13, 2020

Hi Roseanne_H You select receive payment on the customers invoice and in the amount received field enter the amount that you actually received, when you save it will create a credit/unapplied payment on the customers account. When you create another invoice you will be able to use the credit on the account, select receive payment and attach the credit.

Roseanne_H · ‎July 16, 2020

Hi John,

Thanks for your help. To add payments to invoices I just match them on the banking page rather than adding them in manually. So when I'm on the banking page on transactions for review I go to find match then select the invoice that the payment is for then I have a "difference" that I need to resolve and I'm not sure how to go about adding that as credit for the customer?

John C · ‎July 16, 2020

Hi Roseanne_H When you select find match and select the invoice that the payment is for you then select resolve the difference. Enter the customers name in the Payee field and in the category field enter/select the Debtors/accounts receivable account. you will have to enter a VAT code, No VAT (sales), > save. The difference/overpayment will then appear as a deposit on the customers account which you can use as credit towards another invoice by selecting receive payment on the invoice and ensuring the deposit is attached.

View solution in original post

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How do I add an overpayment by a customer to their account for payment on future invoices?