How do I record a supplier overpayment in Xero?

How do I record a supplier overpayment in Xero?

Payment is in the same currency as the bill or invoice

1. In the Business menu, select Bills to pay or Invoices.
2. Find and open the overpaid bill or invoice.
3. Under Make a payment or Receive a payment, enter the total amount you paid or received, then click Add Payment.
4. Enter a description for the overpayment.

How do you deal with an overpayment in Xero?

1. In the Business menu, select Purchases overview.
2. Click See all.
3. Select the Awaiting Payment tab, then open the overpayment.
4. Click Overpayment Options and select Allocate Credit. Xero displays all unpaid bills for this contact.
5. Enter the amount to credit to each bill.
6. Click Allocate Credit.

How do I account for overpayment to my supplier?

If the overpayment is made by mistake, your first action should always be to contact the supplier, explain the situation and agree a route to rectify it. If the invoice is from a regular supplier, the easiest solution is often to apply the overpayment to a new or existing invoice.

How do I refund overpayments in Xero?

Refund a customer overpayment

1. In the Business menu, select Invoices.
2. Select the Awaiting Payment tab.
3. Find and open the overpayment you want to refund.
4. Scroll down to Make a cash refund and complete the payment fields.
5. Click Add Refund.

How do I process a refund from a supplier in Xero?

Record a refund

1. In the Business menu, select Purchases overview.
2. Click See all, then select the Awaiting Payment tab.
3. Open the credit note you want to refund.
4. Scroll down to Receive a cash refund and complete the payment fields.
5. Click Add Refund.

Why is overpayment locked in Xero?

The Date, Amount and Currency fields will be locked if you’ve refunded or allocated an overpayment to a bill, or if you’ve reconciled the orginal bank transaction. You can remove the allocation or delete the refund to edit these fields. In the Business menu, select Purchases overview. Click See all.

How do I reconcile a supplier refund in Xero?

You’ll need to reconcile this against the bank statement line for the refund paid.

1. On the bank reconciliation screen, next to the bank statement line you want to reconcile, click Find & Match.
2. Find and select the checkbox next to the credit that you want to match with the bank statement line.
3. Click Reconcile.

How do I enter a supplier refund in Xero?

What does overpayment refund mean?

An overpayment on your tax return is the amount of refund you would receive. An overpayment occurs when a taxpayer pays too much in income taxes. At the end of the year, if the actual tax return shows that a lesser amount is due than the sum of the payments, an overpayment has occurred.

How do you record a refund from a supplier in accounting?

Record a refund from a vendor

1. Create a stand-alone credit note and then refund it.
2. Unallocate the original invoice and vendor payment or credit note so that the invoice is outstanding and the payment becomes a payment on account, or the credit note a stand-alone credit note.

How to find and match overpayments in Xero?

Once the payment to the supplier shows up in your bank feeds, go to that particular payment and click “Find & Match” link. Search for the bill which you overpaid from the search field. Select the bill by check marking the box beside it. You will notice Xero displaying a notification of by how much total is out. The difference is the overpayment.

What to do if my Xero invoice has been overpaid?

Xero, realizing that the invoice has been overpaid will display a pop-up window asking you to enter the description and the Region (in case you track your invoices). The description field is mandatory, therefore, enter the description of this overpayment and click OK.

How to allocate credit from A2X to Xero?

Click “Credit This Bill” link and it will take you to a new page where you can enter the amount from the total overpayment that you want to credit in “Amount To Credit” field. Click “Allocate Credit” button to save the allocation. Also Read: How To Track Inventory Items From A2X To Xero Accounting Software

What to do if a customer overpays your invoice?

Either the customer asks you for a refund or requests you to adjust it in the next invoice. In both cases, you need to keep proper track of the overpayment right from the beginning or it will create confusion at the year-end. Even worse, messing up with the records would eventually tarnish your reputation among your customers.