How to Handle a Customer Overpayment

This guide explains how to handle a customer overpayment in two scenarios: when the customer has an existing open balance, and when no open balance exists. Follow the appropriate section below based on the customer's current account status.

If the Customer Has an Open Balance

Follow these steps to apply the overpayment to the current invoice and create a credit for the remaining amount.

1. Open Invoice History. From the customer's account, click Invoice History.
   
   
   
2. Select the invoice. Highlight and select the invoice. Click > Change or Double-Click the invoice.
   
   
   
3. Open the Payments screen. Click Payments.
   
   
   
4. Enter the full payment amount. Enter the FULL payment amount (the total amount the customer paid).
   
   
   
5. Confirm the payment entry. Click OK to apply.
6. Proceed to apply. Click Apply Payment.
7. Tag the invoice. Check the box next to the invoice.
   
   
   
8. Apply to tagged invoices. Select 'Apply Payment to Tagged Invoices'.
9. Enter the payment reference. Enter the check number or payment type (e.g., "CASH," "Money Order #") in the Check# field.
   
   
   
10. Confirm. Click OK.
11. Close the screen. Click Close.

The remaining overpayment amount will be automatically added as a credit and can be found in the Credit History.

If the Customer Does Not Have an Open Balance

If the customer has no open balance, you can add the overpaid amount directly as a prepaid credit.

1. Open Credit History. From the customer's account, click Credit History.
2. Insert a new record. Click Insert.
   
   
   
3. Enter the dollar amount. Enter the $ amount.
4. Advance the cursor. Press the TAB key on your keyboard.
5. Select the credit type. Select *PREPAID as the credit type.
6. Enter the payment reference. Enter the check number or payment type (e.g., "CASH," "Money Order #") in the Check field.
7. Add a description. Add any relevant Descriptions.
8. Save the record. Click OK to save.

⚠️ IMPORTANT

If you want the credit to apply only to a specific type of invoice, uncheck the box next to 'Can be applied to...Recurring/Product Invoice.' This forces the system to apply the credit only to the designated invoice type.

Need Additional Help?

Our Customer Success team is here to assist you.

Phone: 847-405-9517 x1
Email: customer.success@alarmbills.com

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