Record overpayment on a sales invoice

Record an overpayment received from a customer on a sales invoice. You can record an overpayment in a currency different from the currency of the invoice. Unapplied overpayments appear on your customer's statement.

Record an overpayment in same currency as the invoice

  1. In the Accounts menu, select Sales.
  2. Click Awaiting Payment.
  3. Select the invoice your customer has overpaid.
  4. Under Receive a payment, enter the amount your customer has paid you.

    Image showing overpayment amount entered on invoice.

  5. Click Add Payment.
  6. Enter a description for the overpayment.
  7. (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 added.

  8. Click OK.

Record an overpayment in a different currency from the invoice

We'll use the example of a customer you invoiced for 950.00 NZD who paid 950.00 AUD, which includes an overpayment.

  1. In the Accounts menu, select Sales.
  2. Click Awaiting Payment.
  3. Select the invoice your customer has overpaid.
  4. Convert the payment your received into the currency of the invoice, then enter in the Amount Paid field in the Receive a payment section.

    In this case, the invoice currency is NZD, and you received 950.00 AUD. The exchange rate is 1 NZD = 0.95 AUD, so the Amount Paid would be 997.50 NZD.

  5. Enter the payment date in the Date Paid field.
  6. In the Paid To field, select the bank account you received the payment in.
  7. Xero will show you an Exchange Rate field. Enter the rate you used to calculate the Amount Paid.

    Image of the receive a payment fields in an invoice.

  8. Click Add Payment.
  9. Enter a description for the overpayment.
  10. (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 with description added and tracking field yet to complete.

  11. Click OK.