Why is overpayment locked in Xero?
Edit a purchases overpayment The Date, Amount and Currency fields will be locked if youve refunded or allocated an overpayment to a bill, or if youve reconciled the orginal bank transaction.
Can an invoice be retracted?
Since invoices are legally binding documents, canceling them must be done correctly by issuing a credit memo. A credit memo, also known as a credit note, is a document thats issued from a business to a customer to cancel all or part of a sale. Its also used to document a refund.
How do I void a sales invoice?
Reversing an invoice paid with a credit note (not included in a tax return) You cannot edit or delete an invoice once its been included on a tax return. If you need to make changes or void an invoice included on a tax return, then you must cancel the original invoice by creating a credit note with the same details.
How do you resolve discrepancies in an invoice?
Depending on the resulting agreement with the vendor, you can then take one of these actions: Accept the price difference, and post the invoice that has matching discrepancies. Revise the invoice amount to the expected amount, and post the invoice. Request a full credit and a new, corrected invoice from the vendor.
How do I deal with overpayment and refund in Xero?
Enter the refund details on the credit note, overpayment or prepayment transaction.Record a refund In the Business menu, select Invoices or Bills to Pay. Select the Awaiting Payment tab. Open the credit transaction to refund. In the cash refund section, complete the payment fields. Click Add Refund.
What is an example of an invoicing error?
Inconsistently sending invoices for example, by delaying them or otherwise sending them on a different date each month is an easy mistake to make. Its understandable, because monthly dates dont fall on the same day of the week. Many will simply pick a Monday morning or a Friday afternoon, and get to work.
How do I remove an overpayment in Xero?
Remove an overpayment In the Business menu, select Invoices or Bills to pay. Select the Paid or Awaiting Payment tab. Find and open the invoice or bill the overpayment is allocated to. Click Overpayment. Click the remove icon. next to the amount credited to the invoice or bill. Click OK.
How do I change overpayment to prepayment in Xero?
In the Accounting menu, select Bank accounts. For the relevant bank account, click Manage Account, then select Receive Money or Spend Money. Next to Received as or Spent as, click Direct Payment, then select Prepayment. Enter the transaction details, then click Save.
How do you correct an overpayment in accounting?
If the overpayment is made by mistake, your first action should always be to contact the supplier, explain the situation and agree a route to rectify it. If the invoice is from a regular supplier, the easiest solution is often to apply the overpayment to a new or existing invoice.
How do you correct an incorrect invoice?
In cases where you want to delete or amend an invoice, a credit note will usually suffice as the solution. A credit note allows you to effectively - and legally - cancel an invoice. Its required by law that you always keep a copy of all invoices you issue for control purposes.
