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 > AR sales invoices > Receive a payment.

Apply an overpayment

When you receive a payment for more than the customer owes on all AR sales invoices, enter the amount of the payment. Sage Intacct tracks the excess as an overpayment, which can be applied to future AR sales 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 AR sales invoice.

1. Go to Accounts Receivable > All > AR sales invoices > Receive a payment. The Select AR sales 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 AR sales 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 cheque, select Cheque.
   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. AR sales 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 cheque amount, Intacct automatically populates some or all of the fields in the Available AR sales 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 AR sales 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 AR sales invoices.
   1. To apply the full amount of an overpayment or advance to an AR sales 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 AR sales 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 AR sales 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 AR sales invoices and debit memos, for each AR sales invoice, you have the following options:
   1. To view the details of an AR sales invoice, select the AR sales invoice number.
   2. To apply the full amount received to an AR sales invoice, select the Receive full checkbox to the left of the AR sales 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 AR sales 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 AR sales 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 AR sales invoice for R500, has a credit for R100, and sent a payment of R400. You entered the cheque amount of R400 and checked the box to apply the full amount of the credit. Change the Amount received from R400 to R500 to apply the R100 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 AR sales 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 > AR sales 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 supplier.

   Learn more about creating suppliers.

5. Refund the money owed to the customer by creating an AP supplier invoice.

   1. Designate the new supplier 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 AP supplier invoice.

If you get stuck, contact your designated support user.