In this guide, you will learn how to handle overpayments on sales invoices. 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

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. If the customer already has an invoice in the ledger to which the overpayment can be allocated, the overpayment can be directly allocated to the desired invoice in the Unallocated reference payments view. Go through the Unallocated reference payments widget or the Sales > Payments page. The allocation starts from the "Allocate" link in the view. The handling method is selected as Normal.

If there is no sales invoice in the ledger yet to which the overpayment could be allocated, the overpayment can be allocated to an existing invoice, resulting in an overpayment on the invoice. The overpayment will appear in the Overpayment tool (Sales > Payments > Overpayments), from which it can be allocated to another invoice of the customer. More about using the Overpayment tool can be found below in the section Overpayment tool.

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. If the payment has not automatically been allocated to the sales invoice, it can be allocated to an existing invoice through the Unallocated reference payments widget or the Sales > Payments page. The allocation starts from the "Allocate" link in the view. The handling method is selected as Normal. Now the sales invoice 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. More about using the Overpayment tool can be found below in the section Overpayment tool.

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. If the payment has not automatically been allocated to the sales invoice, it can be allocated to an existing invoice through the Unallocated reference payments widget or the Sales > Payments page. The allocation starts from the "Allocate" link in the view. The handling method is selected as Normal. Now the sales invoice shows an overpayment. When the refund made to the customer appears on the bank statement, a negative payment is recorded on the sales invoice 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, the handling method is normal. . The amount is negative in this case because it is a refund of the payment. Finally, press "Save". The invoice now shows both incoming payments and the refunded amount 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 line for the refund. Select the triangle down icon next to the Account button and from there 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 purchase ledger as a purchase invoice, or alternatively from online banking.

If the payment has arrived as a machine-readable reference payment from the bank, it can be allocated to an existing invoice through the Unallocated reference payments widget or the Sales > Payments page. The allocation starts from the "Allocate" link in the view. The handling method is selected as Normal. Now the sales invoice shows an overpayment.

When the refund made to the customer appears on the bank statement, a negative payment is recorded on the sales invoice 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, the handling method is normal. . The amount is negative in this case because it is a refund of the payment. Finally, press "Save". The invoice now shows both incoming payments and the refunded amount 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 line for the refund. Select the triangle down icon next to the Account button and from there the voucher linking function. Find the voucher and link it to the bank statement.

Overpayment tool

The main purpose of the tool is to facilitate the user's manual work in cases where their 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. However, the invoice is sent to the customer as zero-sum if it was in the status "Unsent" at the time of allocation.

The tool can be found as follows: Sales > Invoicing > Overpayments.

The tool lists all invoices to which an excessive payment has been allocated in the view that opens to the user. 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

By selecting "Allocate selected overpayments", a view opens where all selected overpayments are included and can be processed invoice by invoice. The user can define here to which open invoice the overpayment should be allocated. If the invoice status is In collection, these do not appear in the invoices to be allocated, so the invoice status must be Unsent Open, Due, Reminded, or Notified. The system automatically suggests the oldest invoice or invoices if the overpayment does not clear by allocating to one invoice. If the user wants to allocate the payment to another invoice, it is possible to change it.

When the user is ready, it is enough for them to press the button at the bottom of the page "Allocate and create postings", which automatically creates the necessary vouchers and lines resulting from the allocation for both invoices.

Invoice payments and processed payments -tab allows you to see the allocation details.

Automatic allocation

By selecting "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 does not have the opportunity to influence which invoice the payment is allocated to. In large invoice volumes, this functionality significantly speeds up the user's work.

Considerations

- Allocation to the customer's open, sent invoice can be done at any stage.
- If you want to get information about the allocation on the invoice, 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 undone.

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



Press the "Reference number" section

Press the payer's name


If the payment needs to be removed, press the "Remove" button. The voucher related to the payment will be voided if no other payments have been recorded on the voucher.

If the payment amount is intended to be edited, change the desired amount in the "Amount" section and select "Save and go to voucher". Also, correct the voucher amount to match the payment amount, this can be done in 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 unallocated reference payments, from where the payment can be processed again.


 

Recording overpayment with handling method Overpayment

If you want to use the handling method Overpayment, you need to check that the accounts used in default postings (Financial management > Settings > Accounting settings > Accounts used in default postings) have the accounting account defined for Overpayment posting.

Processing the payment from the Unallocated reference payments view

The allocation starts from the "Allocate" link in the view. By default, the view filters invoices by reference number, but payments can also be filtered to appear, for example, by the customer's name. Select the invoice to be allocated and the handling method Overpayment > 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. 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. Then select "Add payment" from the sales invoice actions. In the "New payment" view, select the bank account where the payment has arrived, the payment date, and change the payment amount if necessary. Select the handling method Overpayment > Save. 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. Two payments are created on the sales invoice, positive and negative (see example above)

Recording the overpayment to another sales invoice

If the overpayment processed with the handling method Overpayment is to be allocated to another sales invoice, a completely new payment method can be created for this purpose through Sales basic information. The payment method should use the same accounting account as defined in the accounts used in default postings (Financial management > Settings > Accounting settings > Accounts used in default postings)

Find the desired invoice and open the invoice. Then select "Add payment" from the sales invoice actions. In the "New payment" view, select the created payment method in the Account section, the payment date, and change the payment amount if necessary. The handling method is 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 purchase ledger as a purchase invoice, or alternatively from online banking. Once the refund appears on the bank statement, switch to the bank statement, open it for editing, and find the transaction line for the refund. Select the triangle down icon next to the Account button and from there the New voucher creation. In the voucher creation, the bank account is pre-selected with the amount of the bank statement line, and the counter account is selected as the same account as defined in the accounts used in default postings (Financial management > Settings > Accounting settings > Accounts used in default postings).

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

 

 

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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