Handle overpayments—Accounts Receivable

Use the Receive payments page to handle overpayments in Accounts Receivable.

You can:

• Apply overpayments
• Refund overpayments

To view this list, go to Accounts Receivable > All > Invoices > Receive a payment.

Apply an overpayment

When you receive a payment for more than the customer owes on all invoices, enter the amount of the payment. Sage Intacct tracks the excess as an overpayment, which can be applied to future invoices. If the customer would rather have the excess money returned, refund the overpayment.

Use this page to learn how to apply an overpayment to an invoice.

1. Go to Accounts Receivable > All > Invoices > Receive a payment. The Select Invoices for Payment page appears.

When this page appears, at first you see only the Payment options section.

2. Set Payment options to their appropriate values. These settings apply to all the invoices for which you want to apply payment at this time:
   1. Payment method: Select the method of payment. For example, to apply payments made by check, select Check.
   2. Account type: Select whether the account is a bank account or an undeposited funds account.
   3. Account: Choose the account into which to deposit the payment, depending on the account type.
   4. Invoice currency: For multi-currency companies, select the currency in which you received payment.
   5. Customer: Select the customer from whom you received the payment.

   The page refreshes and displays the resulting filter set.

3. Enter the payment information.
   When you enter a check amount, Intacct automatically populates some or all of the fields in the Available invoices and debit memos list. (Depending on the preference for Turn off automatic payment suggestions). If the preference is disabled, which is the default, Intacct proposes which invoices to pay and the amount to pay for each.

   If you usually overwrite the amounts proposed by Sage Intacct and no longer want Intacct to propose those amounts, select the Turn off automatic payment suggestions preference. (Accounts Receivable > Setup > Configuration)

4. On the list of Available overpayments and advances, you have the following options:
   One minor restriction is that you cannot apply foreign currency overpayments to base currency invoices.
   1. To apply the full amount of an overpayment or advance to an invoice, select the Receive/Full checkbox to the left of the credit.
   2. To apply a partial amount of an overpayment or advance to an invoice, in Credit to apply, enter an amount less than the Available credit amount.
   Intacct tracks the credit and overpayment amounts that you selected to apply to the invoices and includes those amounts in the Amount available to apply box. The amount in this box is not editable, but you can change it by changing the amounts for the individual credits and overpayments.
5. On the list of Available invoices and debit memos, for each invoice, you have the following options:
   1. To view the details of an invoice, select the invoice number.
   2. To apply the full amount received to an invoice, select the Receive full checkbox to the left of the invoice. Intacct then automatically enters that amount into the Amount received box.
   3. If a discount is available, the amount is displayed. Select Apply discount to apply the discount to the invoice.
      The discount can be calculated on the full transaction amount, or on the total of the line items only. The calculation is based on the term that you set up for the customer. In addition, if you enable the option in Configure Accounts Receivable, Intacct automatically selects the Apply discount checkbox, and applies the term discount.
   4. If you added credits or overpayments/advances, change the amounts in the Amount received fields for the invoices by the total in Amount available to apply to apply them. Any amount left in the Amount overpaid field will remain as a credit or overpayment.

      For example, assume that a customer has one outstanding invoice for $500, has a credit for $100, and sent a payment of $400. You entered the check amount of $400 and checked the box to apply the full amount of the credit. Change the Amount received from $400 to $500 to apply the $100 credit. The amount overpaid is now 0.00.

6. Select Save.

Reverse an applied overpayment

To reverse an applied overpayment, you must reverse the entire payment or credit amount applied, not only the overpayment amount.

See Unapply or reverse a credit memo that has an associated customer payment for more information.

Refund a customer

If the customer has made an overpayment and you do not plan to create another invoice for the customer, or the customer would like their money back, you can issue a refund. Issuing a refund requires coordination with Accounts Payable.

1. Create an adjustment (debit memo) that adjusts the customer balance to zero.

2. Go to Accounts Receivable > All > Invoices and select Add (circle) next to Receive payments - New!.

3. Apply the adjustment against the customer transaction.

   Unless you apply the debit memo, open transactions and the adjustment will continue to display on your aging report.

4. In Accounts Payable, create the customer as a one-time vendor.

   Learn more about creating vendors.

5. Refund the money owed to the customer by creating a bill.

   1. Designate the new vendor as the payee.
   2. As a line item, designate the same account used in the original credit or payment that you are refunding.
6. Pay the bill.

If you get stuck, contact your designated support user.