Introduction
In some cases, customers may accidentally overpay an invoice or make duplicate payments. For example, an invoice amount is RM100, but the customer pays RM150, or pays RM100 twice. This results in an overpayment (e.g. RM50 or RM100) that needs to be properly handled in the system.
There are two common ways to manage overpayments:
Refund the Overpayment
Offset Against Future Invoices
Refund the Overpayment
If your business process is to refund overpayments, you can return the excess amount using the steps below.
For example, an invoice amount is RM3,000, but the customer pays RM3,500. This results in an overpayment of RM500.
Step 1: Record the Sales Payment
Record the sales payment as usual and apply it to the invoice.
Under the Amount Received field, enter the full amount received from the customer (RM3,500).
Under the Apply Amount field, allocate only the invoice amount (RM3,000).
The system will then automatically display the remaining RM500 as an overpayment.
Step 2: Create a Refund
From the sales payment screen, click the three dots (⋯) next to View and select Add Refund.
Step 3: Enter Refund Details
The system will auto-fill relevant details (customer, amount, and reference number).
Enter the refund amount (RM500) and review the information.
Note: You may refer to the Creating a Sales Refund guide (Step 2.2, 2.3, 2.4.1, and 2.5 under Step 2: Create the Sales Refund) for more details on the fields to complete or review, if needed.
Step 4: Save the Refund
Click Save to complete the refund.
The refund will be recorded under Sales → Refunds.
After saving, the sales payment will show zero overpayment, as it has been fully offset by the refund.
When to Use This Refund Method:
Customer requests the excess payment to be returned
Your business practice requires overpayments to be refunded
You do not intend to keep the amount as customer credit
No future invoices are expected to be offset using the overpayment
Offset Against Future Invoices
Instead of issuing a refund, the overpaid amount can be retained as credit and used to offset future invoices.
This can be done either when creating a new invoice or by applying credit to an existing invoice from the sales payment screen.
Example:
An invoice amount is RM3,000, but the customer pays RM3,500. This results in an overpayment of RM500.
Record the sales payment as usual and apply it to the invoice.
Under the Amount Received field, enter the full amount received from the customer (RM3,500).
Under the Apply Amount field, allocate only the invoice amount (RM3,000).
The system will then automatically display the remaining RM500 as an overpayment.
Option A: Apply when creating a new invoice
If you want to directly use the available credit, you can apply it when creating a new invoice.
Step 1: Create a New Invoice
Create a new invoice as usual at Sales > Invoice > + New > Credit Sales.
Select the customer and click + Item to add items as normal.
Step 2: Apply Credit
You will see an Add Credit field under the summary section, showing the available overpayment (e.g. RM500) from the sales payment.
For example:
If the new invoice amount is RM3,000 and RM500 credit is applied, the system will automatically deduct the credit. The remaining balance payable will be RM2,500.
Step 3: Save the Invoice
Click Save once completed.
After saving:
The invoice will reflect the remaining balance after credit offset.
The sales payment will no longer show any overpayment.
Option B: Apply from Sales Payment Screen
If the invoice already exists or has been saved, you can apply the credit from the sales payment screen.
Step 1: Open Sales Payment
Go to the original sales payment record and click View.
You will see available invoices under the Invoice Payments section.
Step 2: Apply Credit
Select and tick the invoice to be offset using the available overpayment.
The system will apply the credit to the selected invoice.
Step 3: Save the Sales Payment
Click Save to complete the process.
After saving:
The invoice will show the remaining unpaid balance (e.g. RM2,500).
The sales payment will no longer show any overpayment.
When to Use This Offset Method
Customer is expected to make future purchases
You want to maintain customer credit balance
You prefer not to issue refunds
Important Notes
Managing Customer Overpayments: Duplicate or Twice Payments
In cases where a customer makes duplicate payments (e.g. invoice is RM100, but payment received is RM100 + RM100 separately), the total payment will exceed the invoice amount and result in an overpayment.
Example: Outstanding invoice of RM100
Record each sales payment separately as usual.
Apply the first payment (RM100) to the invoice as normal.
For the second duplicate payment (RM100), create a new sales payment under Sales > Payment and do not apply it to any invoice.
Click Save, and the system will prompt an “Unapplied Credits” message. Click OK to proceed.
The system will automatically record the remaining amount as customer credit.
Once recorded, the overpayment can be:
Refunded → follow Refund the Overpayment guide
Used as credit → follow Offset Against Future Invoices guide
