This article will describe how to manage an overpayment in Agrimaster in Enhanced Invoicing.
An overpayment occurs when a customer pays more than the total remaining balance of an invoice. This can occur if they made a data entry error when making the payment, for example.
Agrimaster has a few options to address overpayments. Each of these options are detailed below, and it's best practice to check with your customer on their preferred option:
1. You can refund the overpayment back to the debtor/customer
2. You can use the overpayment on another outstanding invoice for the same debtor/customer
3. You can retain the overpayment for future invoices (if both parties agree on this option)
In the below example, we have invoiced a customer $1200 for herbicide. The customer paid $300 more than was required. In this scenario, the customer was happy for us to retain the payment for a future invoice.
- Receive payment for this invoice
- Select the invoice to pay, select the payment date, and type the payment amount received from the customer:Note: the customer overpaid by $300, so the amount we type in the Payment Amount section is $1200 + $300 = $1500
- A message will appear to let you know how much you are paying against which invoice, click ok:
- As you have recorded a payment of more than the invoice amount, the below message will appear with your options to deal with the overpayment:
- Adjust Amount To Pay is available to select if you made a typing error and the overpayment was a typo.
- Refund Overpayment is available to select if your customer has asked to have the overpayment reimbursed and you need to pay them back
- Use Overpayment on another outstanding invoice will only be available to select if there are other invoices for the same client already entered.
- Retain Overpayment for future invoices is available to select and we will use this for our example
- Select 'Retain Overpayment for Future Invoices' then click to save.
- A message will appear to confirm your invoice has been paid, click Ok:
- Navigate to transactions, where you will see two records, the original invoice for $1200 and an overpayment for $300:
- The overpayment is recorded to the code 'Unearned Income':
- The next time you need to invoice the same debtor, you can apply the unearned income prior to sending it to them, in this example, we have created another invoice for $1200:
- Create the invoice as normal - Creating A New Invoice
- When you click 'Save & Print' a message will appear to alert that there is an overpayment, to have this apply to the new invoice, click 'Yes':
- A message will appear, to alert that the payment has been credited to the new invoice:Please note: The invoice will be created to show the original amount. You will need to send the client two things: a copy of the invoice and a copy of their debtor statement. If you only send them the invoice, they will pay the original amount and you will have another overpayment to manage. To create a debtor statement, see Reporting For Enhanced Invoicing
- The new invoice will show in the Browse Invoices section, you can see the total is $1200 and the amount owing is $900, as the $300 overpayment has been applied in the system:
Please note: If you do not use the overpayment in the month it was created, you will still be able to reconcile, simply mark the record as cleared as you still received the funds to your bank account:
The next time you create an invoice for the same debtor, the overpayment will be detected when you save the invoice, and you will see the same message as in step 9 part 2: