What is Batch Payments - Overpayment?
We have redesigned 'Prepayments' flow, to allow a batch payment to have overpayments. This was required to handle the way that a 'Prepayment' in Xero was being allocated to the Bank Account, which could cause further reconciliation issues in the event that a batch payment was amended to include a overpayment after the bank was already reconciled.
What it means:
The re-defined Wise-Pay process will then in turn allocate the accounting transactions in the form of a payment invoice and a credit note that can be allocated to future invoices in the accounting system. This allows the effective management of liability, giving you the same output as a simple AR credit on account, which can be applied to a future invoice (s). The credit raised through this process can then be applied to future invoices or down-payment invoices raised in ConnectWise and allows for the correct handling of the liability on the balance sheet.
What it does:
There are two scenarios where an overpayment is created:
- Batch Amount is greater than the Payment applied amount
When a batch amount is greater than the amount being applied to invoices, a Wise-Pay Overpayment will be created to handle the additional amount being collected from the customer as an overpayment.
- An invoice is removed from an existing batch payment, and no further invoices are available to apply a payment to and a Overpayment is required to bring the batch into a balanced state.
When the batch amount collected from the customer is not equal to the payment amount being applied to all invoices in the batch, a batch overpayment can be created in the batch management screen.
A batch payment 'Overpayment' will go through the following steps when created:
- Create an Invoice for the Payment (Liability Debit to take up the liability and allow for payment via Wise-Pay Clearing Account)
- Create Credit Note (Liability Credit from prepayment account to Credit Note)
- Apply Credit Note (to future invoice)
- User initiated: Payment Sync will then apply payment to ConnectWise Invoice. (Applied liability from credit note to invoice - revenue)
Note: A Credit Note created by Wise-Pay for the purpose of Overpayments created by Wise-Pay will sync back to ConnectWise as part of the Payment Sync. You will not need to create any further transactions in ConnectWise. Wise-Pay created Overpayments will also sync as payments to ConnectWise as is the case for Pre-Payments created directly in the accounting system.
What configuration is required:
The process is slightly different for Xero and QuickBooks Online, refer to the knowledge based artilces for your referenced accounting package:
- Wise-Pay Overpayments in Xero
- Wise-Pay Overpayments in QuickBooks Online
Overview of creating a Batch Overpayment
- Log into Wise-Pay
- Click Pay Now
- Select Invoice Batch
- Search for a Payer
- Enter the amount you wish to pay in the Batch Amount
- Allocate the respective amounts to each invoice
If there is a remaining amount, an over payment will be created.