Apply overpayment credit to existing invoice or bill

Here's how to apply an overpayment to an existing invoice or bill.

  1. Go to Accounts, then Sales (if overpayment received) or Purchases (if overpayment paid).
  2. On the Awaiting Payment tab, click the overpayment Overpayments icon..

    Image showing overpayment on Awaiting Payment tab.

  3. Click Overpayment Options and select Allocate Credit.
  4. 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.

    Image showing allocation of outstanding overpayment.

  5. Click Allocate Credit.