How To: Create an Under / Over Payment
Table Of Contents
Under and over payment transactions allow you to write off small differences between the value of an invoice and the amount paid. This helps keep customer or supplier statements balanced without the need for further collection or refund activity.
For example, if a customer sends a payment of £7.95 against an invoice for £7.99, you may choose to write off the £0.04 difference rather than pursue payment.
Note: If you need to write off multiple credits at once, see How To: Write off credits en-masse.
Create an Under Payment Transaction
Use this process when a customer has paid slightly less than the invoice value and you want to write off the outstanding balance.
Step 1: Open the Customer Statement
- Open a Customer screen using (show me how).
- Load the required customer record.
- Open the [ Customer | Detail | Statement ] tab.
Step 2: Allocate the Payment
- Allocate the payment against the invoice as normal.
- For guidance, see How To: Allocate Payments.
Step 3: Create the Balancing Transaction
- In the Transactions grid on the left-hand side of the screen, select the invoice that has been almost fully allocated.
- Right-click the transaction.
- Select Create Allocation Transaction (Under and Over Payments).
Step 4: Complete the Transaction Details
The transaction window displays several options:
- Review the amount that will be written off.
- If the amount exceeds 10% of the transaction value, Khaos Control will prompt you to confirm the write-off.
- Select the appropriate nominal account from the drop-down list. This is typically an account named Over/Under Payments.
- Change the posting date if required.
- Select Yes if VAT should be applied to the transaction, or No if VAT is not applicable.
Note: You may need to scroll down within the window to see all available options.
Result
A balancing Sales Invoice transaction is created in the Transactions grid to clear the remaining value.
Create an Over Payment Transaction
Use this process when a customer has paid slightly more than the invoice value and you want to write off the excess amount.
Step 1: Open the Customer Statement
- Open a Customer screen using (show me how).
- Load the required customer record.
- Open the [ Customer | Detail | Statement ] tab.
Step 2: Allocate the Over Payment
- Allocate the payment against the invoice.
- For guidance, see How To: Allocate Payments.
Important: Over payments can only be allocated when the User Allocate option is enabled, allowing the payment amount to be entered manually.
Step 3: Create the Balancing Transaction
- In the Transactions grid, select the payment that has been almost fully allocated.
- Right-click the transaction.
- Select Create Allocation Transaction (Under and Over Payments).
Step 4: Complete the Transaction Details
The transaction window displays several options:
- Review the amount that will be written off.
- If the amount exceeds 10% of the transaction value, Khaos Control will request confirmation.
- Select the appropriate nominal account, typically Over/Under Payments.
- Update the posting date if required.
- Select Yes if VAT applies, or No if it does not.
Note: You may need to scroll down to view the VAT options.
Result
A balancing Sales Invoice transaction is created in the Transactions grid to clear the remaining balance.
Additional Information
- Under and over payment transactions are designed for small balancing adjustments.
- Balancing transactions help maintain an accurate customer or supplier statement.
- The nominal account used should normally be your designated Over/Under Payments account.
Important Notes
- Under and over payment transactions should not be used to apply settlement discounts to supplier invoices.
- To enter supplier settlement discounts, use the process described in How To: Apply a Settlement Discount to a Purchase Invoice.
- All under and over payment transaction numbers are prefixed with UT.