How to handle an overpayment of a sales invoice

[Heather-R]

A customer has overpaid an invoice and wishes it to be held in credit against a future invoice.  How do I handle the receipt of the overpayment, as "Receive Payment" cannot record an unbalanced transaction.  Do I enter the additional amount paid as a "Receive money" and create a credit note manually?  Or is there a simpler way of this, please?

[ROGMichelle]

I haven't done this in sales before, but in pay bills you can put the amount actually paid at the top and then overwrite the amount on the invoice line below with the same amount, which automatically creates a credit memo for either application or refund down the track. I imagine it would be the same in sales... worth a try!

[Princess_R]

Hi @Heather-R,

Thank you for your post, and my apologies for the delay in responding back to your query.

When a customer overpays an invoice, you would record a Receive Payments transaction for the total amount paid, including the overpayment. This automatically creates credit for the overpaid amount, which can be refunded or applied to another invoice. For further information on how to do this, please refer to this Help article, Customer Overpayments.

Please let me know if you need further help with this.

If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.

I'd also like to thank @ROGMichelle for her prompt response and for providing insights regarding handling overpayments. Thank you for your support.

Cheers,

Princess

[Heather-R]

Hi Princess,

Unfortunately I have tried that, but I get an error saying, "An unbalanced transaction may not be recorded" and there it ends with no credit note being automatically raised to cover the overpayment.  Any other ideas, please?

[Princess_R · Accepted solution]

Hi @Heather-R,

Thank you for your response.

The error message, "An unbalanced transaction may not be recorded," suggests that there's a discrepancy between the amount applied column and the amount received. For further information, please refer to the Help article: Customer Overpayments. Please navigate to the bottom of the page to find the FAQ section for detailed information about the error.

Please feel free to reach out if you require further assistance.

If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.

Cheers,

Princess