Negative Cash Payments - Customer Overpays

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Posted on by abutler1986

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Hi All,

How does Business Central deal with overpayments from customers? I.e. the sales invoice is £100 inclusive of VAT and they sent £150. When you go to apply the sales invoice what needs to happen, how does this then show on the customer's account?

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Hello,

When a Customer Overpays a Posted Sales Invoice the additional payment is posted against the Sales Invoice. So using your example, the Sales Invoice was 100.00 but the Customer sent 150.00. I create my Cash Receipt Journal payment and when posted the Customer Ledger Entry will show a Payment of 150.00 applied to the Sales Invoice showing a remaining amount of (50.00). Yo can now use this 50.00 credit against other invoices (Use Apply Entries) or you can create a Payment Journal Type Refund to send back the 50.00 overpayment.

Hope this helps.

Thanks,

Steve

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