How do I process customer overpayments?

There may be times when you receive overpayments for open invoices. It is important that the overpayment transactions are processed to reflect reality. Here's how to process these transactions.

Let's say you have a customer with an outstanding invoice of 1,629.75 and you just received a check for 2,000.00 as payment.

To process the payment receipt:

Enter the receipt as you normally would. Be sure to reflect the actual amount received under the General Info tab, then apply the full amount to the open invoice (see example below).


Save the receipt. Notice how the balance on the invoice now reflects the amount of overpayment (see below).


You can carry the overpayment and apply it to future invoices or you can issue a refund. If no credit or refund is intended, the invoice will need to be credit/adjusted for the amount of the overpayment in order to close the original invoice.

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