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.
On the bank reconciliation screen, next to the bank statement line you want to reconcile, click Find & Match.
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.
Click New Transaction, then select Receive Money (for an overpayment you received) or Spend Money (for an overpayment you paid).
Next to Spent as or Received as, select Overpayment.
Enter the transaction's details, then click Save Transaction.You can't change the Account or Tax Rate fields.