Apply overpayment to existing invoice or bill
Here's how to apply an overpayment to an existing invoice or bill for the same contact.
- In the Accounts menu, select Sales (if overpayment received) or Purchases (if overpayment paid).
- Click Awaiting Payment.
Select the overpayment .
- Click Overpayment Options and select Allocate Credit.
Xero displays all unpaid invoices or bills for this contact. Enter the amount to credit to each invoice or bill.
You can allocate less than the full amount of the overpayment, for example if the overpayment is more than the amount of unpaid invoices or bills.
- Click Allocate Credit.
If the Allocate Credit option doesn't appear in the Overpayment Options menu, please check the following:
- The contact name used by the overpayment and invoices or bills are the same.
- If you use multi-currency, the invoice or bill and the overpayment must be in the same currency.