How to account for a slight invoice/payment difference


Let’s say you have a customer in USA, you invoice his company 200 Euro, he uses service xyz to send the money and send it in US dollars which the system converts during transfer in Euro, when the transfer arrives, you receive 210 rather than 200, how would you account for this in please as my receipt will be 200 Euro? I wish I could put it as a currency gain but the problem is that the invoice was in Euro and not in US dollars therefore there is no currency change.

Thank you.

Ok I think I will simply issue a refund in the next invoice, that’s the best way.

Thanks all.

When you enter the receipt, post the transaction to Accounts receivable and the customer’s subaccount. But leave the invoice number blank. Manager will apply 200 to the invoice and leave the excess 10 as a credit in the customer’s subaccount. The next time you raise a sales invoice for this customer, 10 will automatically be applied to it. This will show on the invoice and the balance due will be reduced by 10.

Hi Tut,

Superb, thanks!

I did what you told me, something I find strange is that when the invoice is paid the invoice does not show up as “PAID”. I generated a bank receipt, do I need to send this one to my customer? I was hoping to resend the invoice with the “PAID” logo as it shows an overpayment of 10 Euro which the bank receipt does not show clearly as it shows the total amount(overpaid) without any breakdowns of the overpayment(like on the invoice).

Thank you.

That is up to you. There is no formal need, since you expect no action by the customer. You could also send a customer statement if you want to let them know the status of their account.

Where? Are you referring to the Sales Invoices tab listing? Or the “stamp” on the invoice itself? If the latter, are you using anything besides the default, Plain, theme? That is the only one that has the PAID IN FULL and OVERDUE stamps. There is no OVERPAID stamp. However, any of the built-in themes will have the mini-statement at the bottom showing what has been applied to the invoice. (If not, update your software.) But you must realize that if you allow the program to automatically allocate payments, the invoice will not show as overpaid, because the excess will be carried forward.

When I usually create an invoice and receive a payment, I see this stamp on my invoices:

Now when the payment shows as overpaid(as my invoice payment is lower than the payment I received) the stamp “PAID IN FULL” does not show up.

The software version I am using is:

Just to let you know, I have just downloaded the latest version and the same issue happens.

As I said in a previous post, “There is no OVERPAID stamp.” Putting the PAID IN FULL stamp on an overpaid invoice would misrepresent its status, so nothing is included. As I also said, “…any of the built-in themes will have the mini-statement at the bottom showing what has been applied to the invoice.” The result will be that the invoice shows a negative balance due.

The numbers are what matter, not the stamp. In fact, some months ago, the stamps were removed from all themes entirely. People complained, so they were added back, but only on the Plain theme. The code for determining whether and which stamp to apply only checks for a balance due after the due date or a zero balance due. Since the balance due on an overpaid invoice does not meet either criteria, nothing shows.

If you leave the invoice number unspecified on the receipt, so the excess is carried forward as a credit, the PAID IN FULL stamp will show, because the invoice will not be overpaid.

If you set up your accounting function to be able to do multi currency, it will automatically do its adjustments if you invoiced in USD and then got paid in Euro depending on what the exchange was prevailing that time. It will then make an automatic adjustment of either foreign exchange gains or loss depending on what it was when the invoice was dated and what it was when it was paid. I usually use the exhange rate entered in the bank statements as I do have multicurrency accounts with multiple currencies in my account.

The invoice is actually from Euro to Euro but sometimes with services like transferwise, they keep a certain amount of money during the transfer to make sure they have enough to cover for the currency fluctuation, if the currency does not fluctuate much, they re-add this money in the transfer at the end so your invoice might be 100 Euro, the guy on the other side may pay 105 Euro(to cover the charges) and you end up with 102 Euro in your bank account. I hope you understand

The problem is that my invoices are set to “recurring” and the software adds an invoice number automatically.
The problem I have now is this:

The invoice has been generated for let’s say 100 Euro
The bank receipt has been done and has a value of 103 Euro

If you click on the left side button called “Sales Invoices” it shows “Overpaid” balance due -3 Euro

If I click on “Customer”, the balance shows as -3 Euro.

A new recurring invoice has been created today, I have set it to 100 Euro again hoping the software would apply a discount of -3 Euro(based on the last overpayment) but instead the invoice shows as “100 Euro”. So I tried to add a new line in the invoice by adding “Overpayment from previous invoice” set to -3 Euro. But to my surprise, if I click on the “customer” account, it now shows balance of 94Euro (It added both -3 Euros together).

If this happening because of the recurring invoice which adds an invoice number automatically?(based on what you told me above).

Thank you Tut

Ok Sorted, I had a receipt made with the wrong year(1 year early)…this was the double amount I could see, thanks again!