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Overpayment / Underpayment / Refund

Recommended practice for scenarios where the invoice recipient makes an overpayment or, conversely, an underpayment.

 

Contents

 


 

Prior information regarding the customer account: In bexio, each of your contacts has a type of account. This is allocated a minus value when you create invoices (this is a debt owed to you) and the customer account balances or reverts to a plus value once your customer pays or overpays your invoices. We book these customer bookings to the customer account “2030 - Deposit payments received from third parties”. Learn more about it »

 


 

Overpayments

Subtract the amount from the next invoice

Baseline situation: The customer may accidentally pay a higher amount than the effective invoice amount, or possibly make a double payment. → The overpayment will not be paid out, but will be posted to the customer's account pending the customer's next invoice.

 

Recommended Procedure:

  1. Reconcile the payment received incl. the overpayment with the invoice. (The overpayment is automatically posted as a credit to “2030 – Third-Party Deposits Received”.)

  2. Once a new invoice is created for the same customer, the balance can be deducted directly from that invoice if the invoice has "Open" status.

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Reconciled payment, including the overpayment.

 

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New invoice to the same customer in the status “Open” - funds can be debited immediately.

 


 

The amount is refunded (overpayment or double-payment)

Baseline situation: The customer may accidentally pay a higher amount than the effective invoice amount, or possibly effect a double-payment. → The overpayment will be refunded accordingly.

 

Recommended Procedure:

  1. Reconcile the payment received incl. the overpayment with the invoice. (The overpayment is automatically posted to “2030 - Third-Party Deposits Received”.)
  2. Enter a payment equal to the amount that exceeded the invoice amount, either via bexio banking or directly in your e-banking.
  3. After receiving the transaction in bexio banking, you can book it again against the customer account of the invoice recipient by means of “customer booking”. → This will offset the overpayment.

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Reconciled payment, including the overpayment.

 

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Reconciliation of the payout with the customer account.

 

Alternative to the customer account: A second option would be for the amount to be “split” even when the bank reconciliation of the excessive amount has been completed. The effective amount on the invoice and the overpayment/double-payment on a “transitory account” such as “1099 - Unclear amounts”. After the payout of the overpayment must once again be reconciled, it can now only be offset with the same transitory account instead of the customer account.

  


 

The amount is non-refundable (booked as income)

Baseline situation: The customer deliberately pays you an amount that exceeds the actual invoice amount for extraordinary services rendered. → This overpayment should be accounted for as extraordinary income, accordingly.

 

Recommended Procedure:

  1. When doing a bank reconciliation of the received payment, use the “Divide Amount” function.
  2. You enter the first entry under "Corresponding". → Find the invoice number or invoice recipient in the search tab and enter only the effective amount in the invoice under “New Payment Receipt”. Confirm this briefly with Enter / Tab, then select “Split Amount”.
  3. For the next booking, click on “Manual booking” and select the appropriate income account for the extraordinary income. (Please note: the selected income account in the screenshot is just an example. Consult your trustee to select the right account for you). The overpayment amount should have been calculated automatically, and you can confirm this with “Reconcile Now”

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Divide the entire payment amount into the invoice + a revenue account recommended by your trustee.

 


 

Underpayment

Customer pays too little (Justified)

Baseline situation: The customer pays you less than the invoiced amount. → If the underpayment is justified, the missing balance can be written off by means of a discount or a credit note, so that the invoice is balanced.

 

Recommended Procedure:

  1. The effectively paid amount will be reconciled to the invoice as usual .
  2. The missing balance can be posted under “Receipts & Credits” .
    • Discount.
    • Credit note.

Please note: For invoices where a lower income is anticipated, the outstanding amount can be booked as a "discount" in bexio, but this will have an impact on the VAT. Otherwise, if the entry should not affect the VAT, the remaining amount can be entered in bexio as a "credit". If this is to be entered as a loss on receivables, an adjustment entry would have to be made under "Manual Entries".

We cannot tell you under which booking records you need to post it because we are not accountants or trustees and do not offer accounting support. For such queries, please contact your accountant or trusted trustee directly.

 

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The amount will be booked out under “Payments & Credits” either by means of “discount” or “credit note”.

 


 

The amount is not paid - invoice is settled (the income is booked back)

Baseline situation: The customer only pays a partial amount on the open/overdue invoice, or does not make a payment at all. → The invoice is set to “Not paid” and an adjustment posting is entered manually. Or, the invoice is settled via credit note, and an adjustment posting is entered manually. (Earnings reduced/loss of receivables)

 

Recommended Procedure:

  1. Open the unpaid invoice and go to the “Reminders” tab.
  2. If so, you can click on the button “Set invoice to “not paid”.
  3. A "reverse booking" of the originally booked income is consequently made. → When creating an invoice, for example, 1100/3200 was booked. This booking will only be corrected with a reverse booking.
  4. If the reverse booking is not sufficient, you can make an adjustment booking under “Accounting” → “Manual booking”.
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Has a partial payment for the invoice amount already been made? Or was the VAT period already charged? - In this case, the reverse booking cannot be made using the “Invoice set to “Unpaid ” function . → Alternatively, create a credit note under the tab “Receipts & Credits” to enter a reverse booking of the income. Reverse bookinga can therefore be made as usual, under “Manual postings”.

Learn more about “Invoice not paid” in detail. » 

 


 

Refund

The amount is paid - refund granted (Create a credit note)

Baseline situation: The customer pays the correct invoice amount. However, the amount is refunded in whole, or in part, as a gesture of goodwill. → You create an outgoing payment and a corresponding credit note.

 

Recommended Procedure:

  1. The customer pays the invoice in full. The transaction is reconciled to the corresponding invoice.

  2. Enter a payment of the amount to be paid via bexio banking, or directly via your e-banking.
  3. The retrieved transaction, following execution, can be “ignored” in this particular case because transactions cannot be reconciled to credits.
  4. Create a credit note. (In the credit note under "Texts" → "Reference", optionally add the invoice number for verification purposes). Click on "Credit note is issued".
  5. Then, under “Payments & Invoices”, insert a new payment issue on the corresponding value date via the corresponding bank account.

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Ignore the bank transaction because it cannot be reconciled with the credit note.

 

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Enter a new manual payment issue in the created credit note and set the payment details of the completed payment.

 


 

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