When a client sends an overpayment, either as an intentional deposit (DPP) or an advance payment on a progress claim/draw, the user must create a transaction in Xero to reconcile the payment in the bank. This guide details the process for recording an overpayment when no corresponding invoice or claim/draw exists in the system.
Recording an Overpayment without an Existing Claim/Draw
Follow these steps to record an overpayment directly from the bank reconciliation function in Xero:
On the Home Tab - Navigate to the Reconcile function in Xero.
Locate the payment sent through from the client in the left-hand column, which lists all bank transactions.
On the right-hand column, where matching transactions are usually found, click the Add Details link.
It will automatically come up as a Direct Payment - In the drop-down menu next to Received as, select Overpayment.
Verify that the From field contains the correct customer contact name as per the G.J. Software.
In the Reference & Description field, enter "DPP " and include the job number as per the G.J. Software for clear identification.
Add the Job number into the Job number tracking field.
Click Save Transaction.
Click Ok to reconcile the transaction.
Once the overpayment has been reconciled in Xero and syncing has occured with the Software a Sale Date will be recorded in the G.J. Software .
Cross-References
If an overpayment is made on an existing claim/draw invoice, the user can create an overpayment that remains in the system to be applied to a later invoice.