How to Sage Handle OverpaidPayments Towards Invoice
When recording the customer’s overpaid payment, verify the Pay box towards the invoice in Sage software (Sage Handle OverpaidPayments Towards Invoice) 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.
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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.
Read More : How to Record and Refund Customer Overpayment in Sage 50
To Record the Overpaid Payment for the Customer’s Invoice
- Click the Create menu (+), in the upper-right corner
- Choose the Receive Payment
- Select a customer, in the window Receive Payment
- Under the section Outstanding Transactions, check mark on the payment invoice you wish to pay.
- 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:
- Click on the Plus (+) icon at the top right corner.
- Select Cheque within Suppliers.
- Choose the customer, in the Payee column
- In the Category column, Select the Accounts Receivable
- Enter the overpaid payment amount in the Amount column
- Click Save and then click close.
Once done, you can match up the check with the overpayment or credit. Follow the steps below:
- Click the Plus (+) icon at the top right
- Select Receive Payment within Customers
- Enter the required information
- Choose the Cheque within the Outstanding Transactions
- Choose the Unapplied Payment within Credits.
- Ensure that the Amount Received is zero.
- Click Save and then click close.
Also Read : Apply Credit towards open Invoices on Sage 50
Final Words
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. The certified Sage specialized trained with all advanced idea and knowledge to tackle any problematic issue and provide a suitable solution as required.
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Frequently Asked Questions(FAQs)
How can a User Handle an Overpayment in an Invoice?
There are three methods by which this can be done:
1. By Refunding your client. For this simply cut them a cheque, or return the funds any other way you deem suitable.
2. By Applying the money to another open invoice for your customer, if it exists.
3. Hold the funds against a future invoice or a credit for the customer.
How can one Process overpayment in Sage?
To do so, you need to follow the below steps:
1. Within the Home window, you need to open the Receipts and select the customer.
2. Next, Make sure that the Deposit toolbar button is on.
3. With In the Deposit To box, you need to select the bank into which you will deposit the amount.
4. With In the No. box, you need to enter either the customer’s cheque number or the word cash.
5. Now enter the date on which you have received the payment.
6. Within the Deposit Reference No. box, you need to type a reference number.
7. Within the Deposit Amount box, type the amount of the payment.
8. Go to the Report menu, and select Display Receipts Transaction Detail to verify that this transaction credits the Bank account and debits the Accounts Receivable account.
9. To print a receipt, Select Print from the File menu.
10. Finally, Click Process
Is there any Accounting Impact for the overpayment to the Supplier?
The Overpayments to Suppliers will save value to the Accounts Payable nominal account and hence tend to appear in the Aged Payables report and Supplier Statements. Thus the Automatic overpayments created when an invoice is paid will result in two separate bank transactions that are being created.
