One of the most common questions we get when providing Xero training is how to apply payments to customers that don’t match the exact amount owing. When the exact amount is owing it is so easy to match the payment, the bank feed on the left lights up a lovely green and all you have to do is press ok.
Customer Part Payment:
Your customer makes a part payment of $100 on a $250 invoice. Click on Match, find the invoice you wish to apply the part payment to and put a tick in the box on the left hand side of the screen. As soon as you tick the invoice, you will see a blue word ‘split’ appear to the left of the amount. Click on split and then click ok, and ok again.
Your customer pays more than the invoice amount. Your client made a payment of $2,000 on an invoice for $1,990. Click on Match, find the invoice that was overpaid, and put a tick in the box on the left hand side of the screen. You will see the out of balance on the bottom right hand corner is $10.
In section 2, click on New Transaction, Receive Money.
Change the drop down box that says Direct Payment to Overpayment. Click on save transaction.
Click on Reconcile.
Customer Double Payment:
Record the entire second payment as an overpayment. Follow the instructions in step 2. The main difference in this scenario is that you will not have an invoice to tick. So you need to not tick any invoices, click on step 2 – New Transaction, and ensure you have selected the correct customer by dropping down the from box. If you type in a slightly different customer name, this will apply the overpayment to a different customer.
We provide one on one Xero Training here at CloudCounting. Just click here to schedule a time to chat in person or via screen share or call us on 04 26 625683