How do you allocate overpayments with refunds

Hi Rachel,

Thank you for your post.

The following steps will help you to refund an over payment. It will also show the refund on the customer statement.

1) Create new account code (settings > codes add)
Type: Current liability
Name: Overpayments
Show in sales: tick
Show in Purchases: tick

2) Allocate the overpayment to the overpayment account
It won't show up in the profit and loss report, and will be reported as a liability in the balance sheet report

3) When repaying, allocate repayment to same overpayments account
This will net off against the existing liability
Generally, both payment and repayment should have vat treatment "outside scope"

For supplier /payment
The same as above, but the new code is of type: current asset

I hope this helps!