Overpayments : Netvisor

In this guide, you will learn how to handle overpayments on a sales invoice. The guide explains how to allocate the overpayment to another sales invoice and how to refund the excess amount to the customer.

CONTENTS

Invoice paid twice with two different payments, overpayment allocated to sales invoice
Invoice overpaid, overpayment allocated to sales invoice
Invoice overpaid, overpayment refunded to customer
Invoice paid twice with two different payments, money refunded to customer
Overpayment tool
Manual allocation
Automatic allocation
Considerations
Manual correction and removal of payment
Recording overpayment with handling method Overpayment

Invoice paid twice with two different payments, overpayment allocated to sales invoice

In this example case, the invoice has been overpaid with two different payments and the overpayment is allocated to another sales invoice of the customer.

You can handle the overpayment as follows:

Open the Unallocated reference payments view by selecting Sales > Payments > Unallocated reference payments or by using the Unallocated reference payments widget.
Select the payment related to the overpayment from the list.
In the view, select the "Allocate" link.
Select the handling method Normal.

If there is no sales invoice yet in the ledger to which the overpayment can be allocated, the overpayment is allocated to an existing invoice, which will then show an overpayment. The overpayment will appear in the Overpayment tool (Sales > Payments > Overpayments), from which it can be allocated to another invoice of the customer. The use of the Overpayment tool is explained in more detail in the section Overpayment tool in this guide.

Invoice overpaid, overpayment allocated to sales invoice

In this example case, the invoice has been overpaid with one payment and the overpaid portion is allocated to another sales invoice of the customer.

Open the Unallocated reference payments view by selecting Sales > Payments > Unallocated reference payments or by using the Unallocated reference payments widget.
Find the overpaid payment from the list.
In the view, select the "Allocate" link.
Select the handling method Normal.

The sales invoice now shows an overpayment. The overpayment will appear in the Overpayment tool (Sales > Payments > Overpayments), from which it can be allocated to another invoice of the customer. The use of the Overpayment tool is explained in more detail in the section Overpayment tool in this guide.

Invoice overpaid, overpayment refunded to customer

In this example case, the customer has overpaid the invoice with one payment and the sales invoice shows an overpayment. The overpaid portion is refunded to the customer.

Open the Unallocated reference payments view by selecting Sales > Payments > Unallocated reference payments or by using the Unallocated reference payments widget.
Find the overpaid payment from the list.
In the view, select the "Allocate" link.
Select the handling method Normal.

The sales invoice now shows an overpayment.

When the refund made to the customer appears on the bank statement, proceed as follows:

Open the sales invoice and select Sales invoice actions > Add payment.
Select the bank account from which the customer's money was refunded.
Set the payment date to the day the refund appears on the bank statement.
Select the handling method normal.
Enter the refunded amount as a negative value, because this is a refund of the payment.
Finally, press "Save".

The invoice now shows the incoming payment and the amount refunded to the customer. Note the voucher number related to the refund.

Then go to the bank statement, open it for editing and find the transaction row for the refund. Select the triangle down icon next to the Account button and select the voucher linking function. Find the voucher and link it to the bank statement.

Invoice paid twice with two different payments, money refunded to customer

In this example case, the customer has paid the invoice twice with two different payments and the overpaid portion is refunded to the customer. The customer's money is refunded, for example, by paying it from Netvisor as a bank transfer, through the accounts payable as a purchase invoice, or alternatively from online banking.

If the payment has arrived as a machine-readable reference payment from the bank, you can handle it as follows:

Select Sales > Payments > Unallocated reference payments or use the Unallocated reference payments widget.
Find the extra payment from the list.
Select the "Allocate" link in the view.
Select the handling method Normal.

The sales invoice now shows an overpayment.

When the refund made to the customer appears on the bank statement, proceed as follows:

Open the sales invoice and select Sales invoice actions > Add payment.
Select the bank account from which the customer's money was refunded.
Set the payment date to the day the refund appears on the bank statement.
Select the handling method normal.
Enter the refunded amount as a negative value, because this is a refund of the payment.
Finally, press "Save".

The invoice now shows both incoming payments and the amount refunded to the customer. Note the voucher number related to the refund.

Overpayment tool

The main purpose of the tool is to facilitate the user's manual work in cases where customers have paid the invoice twice or, for example, due to a comma error, have overpaid the invoice. The tool helps to find such invoices from the invoice list based on predefined logic.

The list shows invoices whose open amount is negative and the invoice has been paid more than the invoice amount. For the payment to appear in the Overpayment tool, the payment must be processed as normal. If the payment method overpayment was used during the payment processing phase, where the overpayment was recorded to the clearing account, these invoices will not appear in this overpayment list.

From the menu Financial management > Settings > Accounting settings > "Accounts used in default postings", the account used for allocating overpayments must be predefined. If the allocation clears the entire open invoice amount, the status of the allocated invoice changes to paid. The invoice is sent to the customer as zero-sum if it was in the status "Unsent" at the time of allocation.

The tool opens by selecting Sales > Invoicing > Overpayments.

The tool lists in the view all invoices to which an excessive payment has been allocated. An overpaid invoice can be identified by the minus sign in the "Open" column.

Payments can be allocated by selecting the desired invoices from the list and choosing the method by which the invoices are to be allocated. Invoices can be allocated either individually manually by the user or automatically by the system.

Manual allocation

In manual allocation, the user selects to which open invoice the overpayment is allocated.

Select the desired invoices from the list in the Overpayment tool.
Select the button "Allocate selected overpayments".
The view opens and all selected overpayments are included. You can handle them invoice by invoice.
Select for each overpayment the open invoice to which the overpayment is allocated.

The allowed statuses for invoices to be allocated are Unsent, Open, Overdue, Reminded or Notified. If the invoice status is In collection, the invoice will not appear in the invoices to be allocated.

The system automatically suggests the oldest invoice or invoices if the overpayment does not clear by allocating to one invoice. You can change the allocation to another invoice if you wish.

When you are ready, proceed as follows:

Press the button at the bottom of the page "Allocate and create postings".

The system automatically creates the necessary vouchers and the lines resulting from the allocation for both invoices.

From the Invoice payments and processed payments tab you can see the allocation details.

Automatic allocation

In automatic allocation, the system allocates overpayments without the user selecting the invoice separately.

Select the desired invoices from the list in the Overpayment tool.
Select the button "Automatically allocate selected overpayments".

The system makes the allocations of overpayments to the oldest open invoice and creates the necessary vouchers and entries for the invoices. In this case, the user cannot influence which invoice the payment is allocated to. In large invoice volumes, this functionality significantly speeds up the user's work.

Considerations

The following points should be taken into account when allocating overpayments:

Allocation to the customer's open, sent invoice can be done at any stage.
If you want the invoice to show information about the allocation, the allocation must be done before sending the invoice.
Allocation cannot be done to an invoice that has been transferred to Dueto's collection service.

Manual correction and removal of payment

If the payment has been allocated to the wrong invoice, a manual payment can be removed or the allocation of a machine-readable reference payment can be released.

You can open the payment for correction as follows:

Open the invoice by clicking the invoice number.
From the "Payment transactions" section, select the link "Payments (x)".

Press "Reference number".

Press the payer's name.

If the payment needs to be removed, proceed as follows:

Press the "Remove" button.

The voucher related to the payment will be invalidated if no other payments have been recorded on the voucher.

If the payment amount is intended to be edited, proceed as follows:

Change the desired amount in the "Amount" field.
Select "Save and go to voucher".
Also correct the voucher amount to match the payment amount by selecting Voucher-specific actions > Open for editing > Save changes.

If the payment has arrived as a machine-readable reference payment, the payment cannot be completely removed. In this case, select "Undo allocation and void voucher". Undoing the allocation voids the payment voucher. Undoing the allocation moves the payment back to the Unallocated reference payments view, from where the payment can be processed again.

Recording overpayment with handling method Overpayment

If you want to use the handling method Overpayment, first check that in the Accounts used in default postings settings an accounting account has been defined for Overpayment posting.

Select Financial management > Settings > Accounting settings > Accounts used in default postings.
Make sure that an accounting account is defined in the Overpayment posting field.

Processing the payment from the Unallocated reference payments view

Open the Unallocated reference payments view by selecting Sales > Payments > Unallocated reference payments.
Select the "Allocate" link in the view.
Filter payments if necessary, for example by reference number or customer name.
Select the invoice to be allocated.
Select the handling method Overpayment and select "Process".

This handling method records the open amount of the sales invoice as paid and the overpayment is recorded to the accounting account defined in the Accounts used in default postings settings. Two payments are created on the sales invoice, positive and negative. In the example below, the sales invoice amount is 37.20 and a payment of 45.00 has arrived on the sales invoice.

Adding the payment manually

Find the desired invoice and open the invoice.
Select "Add payment" from the sales invoice actions.
In the "New payment" view, select the bank account where the payment has arrived.
Select the payment date.
Change the payment amount if necessary.
Select the handling method Overpayment and select "Save".

Recording the overpayment to another sales invoice

If the overpayment processed with the handling method Overpayment is to be allocated to another sales invoice, you can create a completely new payment method for this purpose through Sales basic data.

Open Sales basic data.
Create a new payment method.
In the payment method, select as the accounting account the same account that is defined in Accounts used in default postings (Financial management > Settings > Accounting settings > Accounts used in default postings).

Find the desired invoice and open the invoice.
Select "Add payment" from the sales invoice actions.
In the "New payment" view, select in the Account field the payment method you created.
Select the payment date.
Change the payment amount if necessary.
Select the handling method normal.

Refunding the overpayment to the customer in cash

If the overpayment processed with the handling method Overpayment is refunded to the customer in cash, the money is refunded, for example, by paying it from Netvisor as a bank transfer, through the accounts payable as a purchase invoice, or alternatively from online banking.

Make the refund using the method of your choice (Netvisor bank transfer, accounts payable or online banking).
When the refund appears on the bank statement, go to the bank statement.
Open the bank statement for editing.
Find the transaction row for the refund.
Select the triangle down icon next to the Account button.
Select the function "New voucher creation".
In the voucher creation, use the preselected bank account with the amount of the bank statement row.
Select as the counter account the same account that is defined in Accounts used in default postings (Financial management > Settings > Accounting settings > Accounts used in default postings).

Keywords: overpayment, sales invoice, allocating, refunding money, overpayment tool

Frequently asked questions

Question: How do I proceed if an invoice has been paid twice and I want to allocate the overpayment to another sales invoice?
Answer: Open the Unallocated reference payments view (Sales > Payments > Unallocated reference payments), select the payment, press "Allocate" and select the handling method Normal. If the other invoice does not yet exist, the allocation is made to the existing invoice, after which the overpayment appears in the Overpayment tool, where you can allocate it to another invoice.

Question: How do I refund the excess amount to the customer when the overpayment is visible on the sales invoice?
Answer: When the refund appears on the bank statement, open the sales invoice, select Sales invoice actions > Add payment, select the bank account used for the refund, set the payment date to the refund date, select the handling method normal and enter the refunded amount as a negative value. Save the payment and link the voucher related to the refund to the bank statement.

Question: How do I use the Overpayment tool to allocate overpayments?
Answer: Open the tool by selecting Sales > Invoicing > Overpayments. Select the desired invoices from the list and choose either "Allocate selected overpayments" for manual allocation or "Automatically allocate selected overpayments" for automatic allocation. The tool creates the necessary vouchers and entries for the invoices.

Question: How do I correct or remove a payment that has been allocated to the wrong invoice?
Answer: Open the invoice, select "Payments (x)" from the Payment transactions section, press the Reference number link and then the payer's name. Remove the payment by pressing "Remove" or edit the amount and select "Save and go to voucher". For a machine-readable reference payment, select "Undo allocation and void voucher", after which the payment moves back to the Unallocated reference payments view.

Question: When should I use the handling method Overpayment and what does it do?
Answer: Use the handling method Overpayment when you want to record the open amount of the sales invoice as paid and transfer the overpaid portion to a separate accounting account. The handling method creates two payments on the sales invoice (positive and negative) and records the overpayment to the Overpayment posting account defined in the Accounts used in default postings settings.

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.

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