Guides

Resolve overpaid status on invoices

Since Manager version 17.9.28, both sales and purchase invoices can become overpaid when more has been received (for a sales invoice) or paid (for a purchase invoice) than the original total of the invoice. This results in the Balance due for the invoice showing as a negative amount. Manager will display Overpaid in the Status column of the main Sales Invoices or Purchase Invoices tab listing.

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There are many reasons an invoice could become overpaid:

  • The customer pays more than the invoice total.
  • A receipt from a customer or payment to a supplier is allocated to the wrong invoice.
  • A credit or debit note is posted to an already-paid invoice.
  • A receipt or payment is posted to a correct invoice to which Manager has already distributed money automatically because an invoice was not selected during a previous transaction entry.

Overpaid invoices are considered bookkeeping errors. Manager will display overpaid invoices at the top of Sales Invoices or Purchase Invoices tab listings so you can see and can resolve them. You should resolve overpaid status before sending out customer statements.

Viewing the invoice ledger

To determine the specific reason an invoice is overpaid, view the ledger for that invoice. To access the ledger, click on the blue amount under the Balance due column in the tab list:

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This will reveal all transactions posted against the specific invoice (including the invoice itself) and a running balance:

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Resolving overpaid status

Resolve overpaid status by editing one or more of the transactions in the invoice ledger.

Example
Brilliant Industries was issued a sales invoice for 1,000. By mistake, Brilliant paid 1,100, resulting in overpayment of 100 on the invoice:



To resolve this issue, you edit the transaction where you recorded the receipt of 1,100 and split the amount so only 1,000 is allocated to the invoice and 100 remains unallocated:



After the transaction is updated, the invoice status shows Paid in full:

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The unallocated 100 is applied to any unpaid invoices Brilliant has, oldest due date first, or remains as a credit to be applied to future invoices.

Sometimes overpayment on invoices can be due to mixing automatic and explicit allocations. When you record a receipt from a customer or payment to a supplier, but do not specify the invoice, Manager will automatically allocate the transaction to the unpaid invoice with the oldest due date. But if the transaction was intended for a specific invoice, it should be recorded that way.

Example
Brilliant Industries has two unpaid sales invoices. The first is for 5,000 and the second for 150:



They pay 150 and you record this receipt without specifying an invoice. Manager allocates 150 to the oldest invoice, decreasing its balance due from 5,000 down to 4,850, while keeping the balance due on the second invoice unchanged:

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Then you receive 5,000 with a remittance advice specifying the payment is for the earlier invoice. If you allocate 5,000 to the first invoice, you would end up with over-payment of 150 on first invoice and the balance due still being 150 on the second invoice:

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Obviously, Brilliant doesn’t owe you anything. So you should click on the negative Balance due amount, find the payment of 150 that was automatically allocated to the bigger invoice and reallocate it to the smaller invoice. Now all invoices are shown correctly and the customer’s Accounts receivable balance is correct:

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