Overview

  • Applicable to MYOB AccountRight Live, Xero, Intuit QuickBooks Online or MoneyWorks only.
  • This process is essential in order to keep the Accounts Receivables in Ostendo and the accounting system aligned. This means overpayments cannot be handled in the accounting system as they normally would as this will not synchronise with Ostendo. It also means that customer payments should not be left unapplied in Ostendo as this will not reflect in the customer ageing in the accounting system.
  • This process is for when a customer over pays and there is no invoice to allocate the overpayment portion to.
  • An overpayment value cannot be recorded in the accounting system or Ostendo except by a credit note. This will require a new invoice and credit note to process the payment and show a credit balance on the customer's account in both Ostendo and the accounting system.
  • In Ostendo create a descriptor for overpayments using a non taxable tax group as this will be used on an invoice and credit note will offset each other. The invoice and credit note this descriptor will be used in will not be income but rather a means of paying invoices


Process

  1. When the person processing customer payments encounters an overpayment in the accounting system bank feeds or in Ostendo, the payment should not be applied until the process below is followed.
  2. In Ostendo create a new direct invoice for the overpayment value on the same date as the payment date. This will post to the accounting system.
  3. In Ostendo create a new direct credit note to offset the overpayment invoice using the same date, (NB do not credit the overpayment invoice but create a new direct invoice as a credit note). This will post to the accounting system as a credit note.
  4. In Ostendo or the accounting system create one payment and apply it to the original invoice(s) and the new overpayment invoice so that the payment is fully applied. This will apply the payment to both invoices in Ostendo and the accounting system.
  5. Both Ostendo and the accounting system will have a credit note that can be applied to an invoice in the future. The customer ageing and statements in Ostendo and the accounting system will both show a credit balance against the customer's account.
  6. The credit note must be applied to future invoices in the accounting system and in Ostendo exactly the same, as credit notes must be applied in both systems independently. Alternatively, a negative payment can be processed in Ostendo against the credit note to refund the overpayment to the customer.


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