How_do_I_apply_an_overpayment_to_the_original_expense_account_

How do I apply an overpayment to the original expense account?

Applying the overpayment to the original expense amount helps tie the excess payment directly to the transaction it relates to. This makes it easier to 

  • reconcile payments and receipts. 

  • identify which transaction caused the overpayment. 

  • respond to audits or customer inquires. 

 

If an overpayment isn't tied to the original expense, it may sit in the system as an unallocated credit, which can

  • complicate the reconciliation process. 

  • lead to unclaimed (unapplied) cash. 

  • cause confusion for both internal accounting and external payers. 

 

Applying an overpayment to the original expense account

1. Open Cash Receipting > Payments > Enter Payments.

2. Enter a receipt as usual.

3. Enter the GL account to apply the credit to.

Note: If the Miscellaneous Distribution is tied to a GL account, you can select the distribution code from the Distribution drop-down list, however, you will also need to create a JE journal entry in General Ledger to move the credit to the selected expense account. To do  this, debit the GL account that was selected on the receipt and credit the expense account the original invoice was expensed to.

4. Finish the receipt as usual.

The overpayment is applied to the original expense account.

 

 

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