Record and reconcile an overpayment in your bank account

Record an overpayment, that you haven't already entered into Xero, during bank reconciliation. Xero prompts you to allocate the credit next time you approve a sales invoice or bill for that contact.

  1. On the bank reconciliation screen, next to the bank statement line you want to reconcile, click Find & Match.

    Image showing overpayment on bank rec.

  2. Find the invoice or bill entered in Xero. Select the checkbox next to the transaction that you want to match with the bank statement line.

    Image showing invoice selected.

  3. Click New Transaction, then select Receive Money (for an overpayment you received) or Spend Money (for an overpayment you paid).

    Image showing New Transaction button selected.

  4. Next to Spent as or Received as, select Overpayment.

    Image showing Overpayment selected.

  5. Enter the transaction's details, then click Save Transaction.

    You can't change the Account or Tax Rate fields.

    Image showing overpayment transaction details entered.

  6. Click Reconcile.

    Image showing transactions reconciled.