
Overpayments can become extremely confusing, and lead to inaccuracies in your bookkeeping if not dealt with correctly.
If you have overpaid a supplier, you must first match the relevant invoices you paid. In the bank reconciliation screen, select “match” next to the transaction you wish to reconcile.
Select the relevant invoices from the invoice list or use the search function to narrow down your selection further.
Then underneath this select “New Transaction” and “Spend Money”.

To mark the overpayment, change the spent as type to “Overpayment”.

Ensure the amount shown is the exact amount that you have overpaid by. Then, click save and reconcile.

In the future, this overpayment can be allocated against amounts due by opening up the overpayment transaction and selecting “allocate credit” in the overpayment options.
Otherwise, if the supplier issues you with a refund, you can enter the details in “receive a cash refund” which appears when you open the overpayment transaction.

During bank reconciliation, this will appear as a suggested match for you to reconcile.
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