How do I process an overpayment?

Here you will learn how to process a payment larger than what is owed.

Users have the ability to add a payment that exceeds the total amount applied to a particular invoice. This will save in the system as an "Overpaid Amount."

Go to Accounts Receivable > Receive Payment.

Click Add.

Enter the Customer # and click Load All to see all open invoices. Select the one(s) you want to pay. The Amount field and Total Payment field will automatically update to the total balance of the invoice selected. The Payment column will also update.

Select whatever Paid By method you like and enter in an amount larger than the payment for the selected invoice(s). You will see both the Unapplied and OverPaid fields immediately adjust to reflect this.

Click Save.

Click Yes.

Go back to the Receive Payments list, click Apply, and you will see the payment appear for the invoice you paid.

Click Add again, enter the Customer # and click Load All again. Now, when you go to the Credits tab, you can see it here listed as type: OverPaid.

You can also see this credit by going to CRM > Credit Management.

Adjust the Search by method to Type, then select OverPaid. Click Apply.

The OverPaid credit will appear.

See related:

How do I create a Credit Memo?.