Record overpayment on a bill

Record an overpayment you made on a supplier's bill. You can record an overpayment in a currency different from the currency of the bill. You'll need to have a Xero bank account in each currency before you can record the overpayment.

Record an overpayment in same currency as the bill

  1. Click Accounts, then select Purchases.
  2. Find the bill you overpaid your supplier for and click to open it.
  3. Under Make a payment, enter the amount you paid your supplier.

    Image showing overpayment entered on bill.

  4. Click Add Payment.
  5. Enter a description for the overpayment.
  6. (Optional) If you have set up tracking for your organisation, select the tracking category for the overpayment. If you don't want to apply tracking, leave the field blank or choose (None).

    Image showing overpayment description and tracking entered.

  7. Click OK.

Record an overpayment in a different currency from the bill

Let's say your base currency is Canadian dollars. We'll use the example of a supplier who invoiced you for 675.00 CAD. You accidentally paid them 675.00 USD, which includes an overpayment.

  1. Click Accounts, then select Purchases.
  2. Find the bill you overpaid and click to open it.
  3. Under Make a payment, in the Amount Paid field, enter the amount you paid in the currency of the bill.

    In this case you paid in USD but the bill is in CAD, so you enter the amount in CAD. 675.00 USD converts to 882.18 CAD, so enter this CAD amount on the bill.

  4. Enter the payment date in the Date Paid field.
  5. In the Paid From field, select the foreign currency bank account you made the payment from.
  6. Xero will show you an Exchange Rate field. Enter the foreign exchange rate from your bank statement.

    Image showing FX rate.

  7. Click Add Payment.
  8. Enter a description for the overpayment.
  9. (Optional) If you have set up tracking for your organisation, select the tracking category for the overpayment. If you don't want to apply tracking, leave the field blank or choose (None).

    Overpayment popup with description 'Accidentally paid from USD a/c instead of CAD.'

  10. Click OK.