How can I record an over payment of a sales invoice or a vendor bill

There may be times when you have received an over payment from a customer or you have overpaid a purchase invoice.

Record a customer overpayment

Open the Banking tab, then follow these steps:

1. Select the required bank account.
2. Select New Entry, then Sale/Receipt.
3. On the Customer Receipt tab, complete these fields:
   

   Customer	Select the customer who paid the invoice.
   Paid into Bank Account	Select the correct bank account.
   Method	Select the customer's payment method.
   Date received	Enter the date you received the payment.
   Reference (optional)	Enter a reference for the receipt.
   Amount received	Enter the total amount the customer paid.

4. Select the checkbox for the invoice the customer paid.
5. Check the overpayment amount in the Left to allocate
6. Select Save.
7. When Sage Accounting asks you to save the unallocated amount as a payment on account, select Yes.

Sage Accounting records the overpayment as a payment on account.

Record a vendor overpayment

Open the Banking tab, then follow these steps:

1. Select the required bank account.
2. Select New Entry, then Purchase/Payment.
3. On the Vendor Payment tab, complete these fields:
   

   Vendor	Select the vendor you paid.
   Paid from Bank Account	Select the correct bank account.
   Method	Select the payment method.
   Date received	Enter the date you made the payment.
   Reference (optional)	Enter a reference for the payment.
   Amount received	Enter the total amount you paid.

4. Select the checkbox for the invoice you paid.
5. Check the overpayment amount in the Left to allocate
6. Select Save.
7. When Sage Accounting asks you to save the unallocated amount as a payment on account, select Yes.

Sage Accounting records the overpayment as a payment on account.

Manage a payment on account

Use these articles to allocate a payment on account or record a refund:

• How to allocate credit notes and payments on account — Allocate payments on account, credit notes, and invoices from a customer record
• How to allocate an invoice to a payment on account — Allocate a payment on account to an outstanding invoice
• Record a refund to a customer in Accounting — Use a payment on account to record a customer refund
• How to record a refund from a vendor — Use a payment on account to record a supplier refund