Overpayment of a customer invoice

The prepayments functionality will allow you to book any overpayment a customer makes as a prepayment from that customer.

The functionality will allow you to track these overpayments and use them as payments at a later date.

Workflow:

1. To be able to use the prepayment functionality you need to make sure you have a default prepayment account set up under:
   - Registry - Charts of Accounts - Default accounts
   - or on the customer under Registry - Customer -  Additional Information
   
   
2. If a customer has paid too much and you want to register an overpayment:
   Go to Invoicing - Customer Invoice and click on Register Payments.
   The functionality is also available when you match transactions under Banking in the Process transactions view.
   Register the overpayment by entering a positive amount in the Prepayments field. Then click on Register Payment. The amount goes to Credit on its own row in the payment journal.
   The prepayment amount is now available to use as a payment on your next invoice to this customer.
   
   Note: Any amount received which is above the invoice amount must be posted to either a deviation account or as a prepayment. 
   
   
   
   
   Tip: When working manually with payments, you can keep your audit trail complete by linking bank transactions to your journals manually. Read more here.
   

3. When you save your next customer invoice for the customer who has a positive balance on their prepayment account, a banner appears at the top of the invoicing view informing you of this as as well as what account the balance is ported on.
   
   
   

4. If you want to use the prepayment to pay a customer invoice, click on Register Payment.
   Enter a negative amount in the Prepayments field, leave the Received Amount as "0", and  click on Register Payment.
   The prepayment amount will then go to debit in the payment journal, and the prepayment balance for this customer will be reduced by the amount used.

   You can enter an invoice text informing the customer that an overpayment has ben used to pay part of the invoice.  When you send the invoice to your customer, the invoice will have an amount due smaller than the invoice total.
   
   Note: The balance available for the specific customer is visible in the Customer Balance field. See below. You cannot use more money than what is displayed in the balance when using a prepayment to pay a customer invoice. 
   
   

   
   Note: Overpayments can be tracked in the customer subledger report.