Overpayment
A payment larger than what the invoice owed. The excess is money you hold for the customer, not revenue.
In Solo Superstars
Refund the excess, apply it to the customer’s next invoice, or issue it as store credit. Until you do, it sits as a liability rather than inflating sales.
The excess is an unapplied payment: money you have received but that is not yet tied to anything the customer bought. It is never counted as revenue on either the Cash or the Accrual reporting view. Only the part that paid off the invoice is revenue.
An unapplied payment stays flagged until you resolve it one of three ways:
- Refund it — the money goes back and the balance clears.
- Convert it to store credit — the customer can spend it with you later. No cash moves.
- Apply it to another invoice — it becomes payment toward that invoice instead of new money received.
Example
$1,250 received on a $1,200 invoice: 50 to 2600 Customer Deposits until refunded or applied.
A hotel pays Harbor Lane Coffee $1,250 by bank transfer for a $1,200 House Blend order. The Cash view counts $1,200 of revenue on the payment date. The extra $50 is flagged as unapplied until the café refunds it or applies it to the hotel’s next order.
Codes shown are the defaults a new workspace starts with. Yours may be renamed or renumbered — check Accounting › Chart of accounts. See the full default chart.
Also called
- credit balance
- unapplied payment
- unapplied customer payment
Related
- Partial payment — A payment for less than the invoice balance. The invoice stays open with the remaining amount due.
- Refund — Money returned to a customer. Recorded as a negative payment against the original so the invoice’s net stays right.
- Store credit — A refund issued as credit the customer can spend with you later. A liability, not cash.
- 2600 Customer Deposits — Money customers paid before you delivered: retainers, deposits, prepaid orders. A liability until you earn it.
- Cash basis — Counting revenue when money lands and expense when you actually pay. Simpler, and what most sole proprietors file on.