WK How To: Reconcile Overpayments
- First click on find & match of the bank transaction received or paid
- Second select the invoice that is being paid
- Select “New Transaction” and “Receive Money” or “Spend Money” depending on whether it is a payment you have made or an amount that you have received.e
- Click on the drop box showing “Direct Payment” and change this to “Overpaymen
- Ensure that the contact is the same contact as you have in Xero (Xero will automatically put the contact as what is shown in the bank Payee line). Then once happy that is correct click save transaction and then reconcile.
The overpayment will now sit in your accounts payable or receivable, a bit like a credit note. The next time you issue an invoice for the customer (or receive invoice from supplier) it will prompt you to offset the credit owing.
Alternatively if you want to reimburse the customer or receive a refund yourself, you can offset the credit against the cash refund by manually applying a payment to the overpayment and this will allow you to match the overpayment with the funds in the bank account.