Support Centre

How to Deal with an Overpayment

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If payment is received for more then the balance due of an invoice there are two options for dealing with the overpayment:

  • Post the full amount of the payment to the invoice. The invoice will then show a credit
  • Apply the overpayment amount as a Payment Credit on the City Ledger Account which can then be applied to future invoices

The following article explains how to perform these two options.

Posting an Overpayment

An Overpayment would be posted as follows. Operations > City Ledger. Locate the Invoice where you wish to apply the payment and select the Pay Invoice button.

Posting an Overpayment

In this example, the Balance on our Invoice is $339.00 but a cheque payment for $400.00 was received. Enter the Payment Amount as $400.00 and select Ok.

A message will appear asking you to confirm the payment. Click Yes to proceed.

Next, select the desired option to deal with the overpayment:

  • Post full payment of $400.00 to Invoice #1152 - post the full amount of the payment to the invoice. The invoice will then show a credit.
  • Apply remaining amount of $61.00 to the account as a credit - Pays the invoice in full, and applies the remaining amount as a Payment Credit on the City Ledger Account, which can then be applied to future invoices.

Post Full Payment to Invoice

To proceed with this option:

  1. Select Post full payment of XXX to Invoice # XXXX
  2. Click Ok
Post Full Payment to Invoice

The full payment will apply to the Invoice, which will now reflect a credit balance, shown as a negative amount.

Apply Remaining Amount to the Account as a Credit

To proceed with this option:

  1. Select Apply remaining amount of XXX to the account as a credit
  2. Click Ok
Apply Remaining Amount to the Account as a Credit

The balance on the Invoice will now be $0.00

Account Payment Credit

And the City Ledger Account will now reflect the overpayment as a Payment Credit which can be used to pay future invoices.

Account Payment Credit
Previous Article How to Post a Payment to an Invoice using Payment Credit
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