How To: Create an Under / Over Payment

Under / Over Payments are used to write off small amounts of money to balance a customer or supplier statement. For example, a customer sends a cheque for £7.95, their order total was £7.99 and you would rather write off the difference than chase the customer for it.

Note: you can write off credits en-masse, see How To: Write off credits en-masse.

Creating an Under Payment

  1. Open a Customer screen (show me how).
  2. Find and load the Customer.
  3. Open the [ Customer | Detail | Statement ] tab.
  4. Allocate the Under Payment to the invoice (see How To: Allocate Payments).
  5. In the Transactions grid (on the left-hand side of the screen) click on the invoice that has almost been fully allocated.
  6. Right click and select 'Create Allocation Transaction (Under and Over Payments)'.
  7. The message will have several options:
    1. The amount the balancing transaction will be for.
    2. If the amount is for more than 10%, the system will query the amount.
    3. Select the appropriate nominal account from the drop-down. The nominal will usually be called 'Over/Under Payments'.
    4. Change the posting date if required.
    5. Click 'Yes' if VAT is applicable to the transaction or 'No' if it is not.
      Note: you may need to scroll down to the the options at the bottom.
  8. A Sales Invoice line is created on the Transactions grid for the balance.

Creating an Over Payment

  1. Open a Customer screen (show me how).
  2. Find and load the Customer.
  3. Open the [ Customer | Detail | Statement ] tab.
  4. Allocate the Over Payment to the invoice (see How To: Allocate Payments).
    Note: overpayments can only be made if the "User Allocate" checkbox is ticked allowing the payment amount to be entered manually.
  5. In the Transactions grid (on the left-hand side of the screen) click on the payment that has almost been fully allocated.
  6. Right click and select [Create Allocation Transaction (Under and Over Payments)].
  7. The message will have several options:
    1. The amount the balancing transaction will be for.
    2. If the amount is for more than 10%, the system will query the amount.
    3. Select the appropriate nominal account from the drop-down. The nominal will usually be called 'Over/Under Payments'.
    4. Change the posting date if required.
    5. Click 'Yes' if VAT is applicable to the transaction or 'No' if it is not.
      Note: you may need to scroll down to the the options at the bottom.
  8. A Sales Invoice line is created on the Transactions grid for the balance.

Notes:

  • Under and Over Payments should not be used for applying settlement discounts to supplier invoices. Settlements discounts can be entered in the Purchase Invoice screen via the context menu as described in How To: Apply a Settlement Discount.
  • Under and Over Payment invoice numbers are always prefixed with UT.

See Also


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