Customer Over-payment or Under-payment

Customer Over-payment or Under-payment

How to handle customer over/under payment. This is when a customer pays more or less than their invoiced amount.


First, decide how you will handle the difference. For example, if the customer is overpaying by a very insignificant amount, you may choose to apply that to you GL and not leave it on the customer account. However, if the amount is to be returned to the customer or left on their account, you will need to adjust how you are applying the amount received.

Example 1:
The customers payment is slightly more or less than their invoiced amount, and you have decided to apply the overpaid amount to your GL and not show it on their statement. To do this, use the "Overpayment" button. WARNING: This will post the amount to your over-payment GL and will NOT show up on the customer AR statement as an outstanding amount.

Example 2:
The customers payment is more than the invoiced amount, and you want to leave this on their account so you can issue a credit or apply to a future invoice. In this case you need to adjust the amount you are applying before posting. This is covered in example two in the video below.

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