There are two types of overpayments we receive for Sales. An overpayment for a Deposit Pending Preliminaries (DPP) and another for a Progress claim.
Overpayments can be intentional – if, for example, you want to record a deposit (DPP) or advance payment on a progress claim for a client’s build.
When an overpayment is made by a customer or client and received in the bank, we will have to create a transaction in Xero to be able to reconcile this.
- Go into the Bank reconciliation function of Xero. On the left will be a column with all the bank transactions, spent and received.
- Find the payment that has been sent through from the client.
- On the right is a column of matching transactions in Xero. However, because the payment has no invoice/claim to be applied to, there won’t be a matching transaction here.
Instead there will be a box with multiple tabs.
- Click the Find & match link on the right.
- Select the New transaction button to the right and then select Receive money.
- Then click the drop down option next to Received as and select Overpayment.
- Be sure to check that the From field has the correct customer contact name in it.
- In the description field, add the word Preliminary works fee with the job number for extra clarity.
- Add the Job number into the Job number tracking field.
- Click Save Transaction.
- Then click Ok to reconcile the transaction.
If an overpayment is made on an existing claim invoice, (for example the customer has overpaid an invoice total by $500.00, we can create an overpayment that can sit in the system and be applied to a later invoice.
Click on the link for instructions on how to do this. https://help.gjgardner.com/au/hc/xero/how-to-receive-an-overpaid-claim-from-a-customer/
Hi team, have the images been removed from this knowledge article?
Greg