How to clear off an overpayment from a debtor?
Overpayment: When payment received from a debtor is greater than the amount owed.
Assume you have an outstanding Sales Invoice of $286.92. The Customer sends you a payment of $286.95 to offset against the invoice owed. Since the payment received is greater than the outstanding, you recorded it with an overpayment of $0.03. You have three options in managing the overpayment; issue a refund of $0.03 to the customer, hold it and knock it off against other outstanding invoice from the customer, or “clear off” the $0.03 to an income account within the same period.
You may consider option three If the overpayment amount is not significant or overpayment was due to rounding issue during transfer from another system to MoneyWorks.
To clear off an overpayment, you create a Sales Invoice and charge it to an income account. Then, do a Receipt from the customer and select “Use Previous Surplus” when prompted. Follow the Apply Payment wizard to knock off the invoice against the overpayment.
MoneyWorks will automatically add the new invoice into the overpayment receipt to “clear off” the outstanding amount.
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