Occasionally you will come across an overpayment error on a contact account which looks like this:
What causes this error?
One scenario which causes this error is where a payment has been made against a purchase order (before receiving the invoice), then when the invoice is received, the prices are changed resulting in that pre-payment being for more than the order total - there is an overpayment. On a sale we would automatically see that the overpayment amount is split off of the order and added to the customer account as on account payment with no errors. Currently, purchases does not operate in the same way and we see this error. The problem cannot be fixed by allocating the transaction or making further payments. It must be corrected as follows:
- Enter a reverse payment against the order to remove the overpaid amount
- Enter an on account payment directly against the contact
If the journal is edited this will fix the error on the supplier financials but the order will remain overpaid. When the overpayment is later allocated to another order the payment amount is recorded against that order as well - the result is the overpayment is duplicated on your purchases reporting, however, your accounting is correct.