How to Sage Handle OverpaidPayments Towards Invoice

handle overpaid payments towards invoice

When recording the customer’s overpaid payment, verify the Pay box towards the invoice in Sage software to pay it for the authentic invoice amount, and then click Apply in the Revenues tab to record the overpaid payment amount.  Set the General Ledger Account to Other Income. If there is no GL Account column, click on the Journal button and modify the account.

If the overpaid payment is for a specific amount and they don’t consist of open invoices, you need to maintain track of the credit balance. Doing that manually by entering the Amount Paid towards the invoice is always recommended. The actual Amount Paid for the invoice should be more than the Amount Due. This causes the invoice having a negative balance and display on their account such as a credit memo.

To Record the Overpaid Payment for the Customer’s Invoice

  1. click the Create menu (+), in the upper-right corner
  2. Choose the Receive Payment
  3. Select a customer, in the window Receive Payment
  4. Under the section Outstanding Transactions, check mark on the payment invoice you wish to pay.
  5. In the field Amount received, enter the correct amount you got from the customer which also includes the overpayment.

By using the check to record, the refund amount minimizes your bank’s balance and offsets the customer’s overpayment. Here’s how: 

  1. Click on the Plus (+) icon at the top right corner.
  2. Select Cheque within Suppliers.
  3. Choose the customer, in the Payee column
  4. In the Category column, Select the Accounts Receivable 
  5. Enter the overpaid payment amount in the Amount column
  6. Click Save and then click close.

Once done, you can match up the check with the overpayment or credit. Follow the steps below: 

  1. Click the Plus (+) icon at the top right
  2. Select Receive Payment within Customers
  3. Enter the required information
  4. Choose the Cheque  within the Outstanding Transactions
  5. Choose the Unapplied Payment within Credits.
  6. Ensure that the Amount Received is zero.
  7. Click Save and then click close.

Avail reliable support from IT experts!

With the resolution step given above along with inclusive information about Overpaid payment towards invoice in Sage accounting software, you might be encountering no further difficulty. However, you can always seek for top-notch support services from Sage experts to avail added information. To connect with the sage and to get an instant solution, directly make a call at Accounting Advice Sage 50 technical support Phone number 1800 964 3096 readily available for 24×7.

The certified Sage specialized trained with all advanced idea and knowledge to tackle any problematic issue and provide a suitable solution as required. You can also chat via Sage 50 Live Chat Support directly from the website.

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