How to manage overpaid or underpaid invoices

Learn how to correctly handle invoices that have been overpaid or underpaid to ensure accurate financial records in Farm Focus.

Managing an underpaid invoice

If an invoice has been underpaid, you should still match the bank transaction to the corresponding invoice. Once matched:

• The bank transaction will move to the Completed screen.

• The invoice will remain in the Needs Action screen until fully paid and matched.

• The invoice will display a Partially Paid token along with the remaining amount due.

When the remaining amount is paid:

• Match the transaction to the partially paid invoice.

• Both the transaction and invoice will then move to the Completed screen.

Managing an overpaid invoice

If an invoice has been overpaid, the Match button will remain greyed out, preventing you from matching the transaction. The Matching assist button (?) will highlight any errors and provide guidance on resolving them.

To manage an overpaid invoice:

1. Go to the Needs Action screen.

2. Create a + Record Money Out manual invoice for the overpaid amount or update the invoice to match the transaction value, noting the reason for the overpayment in the description.

3. Code the overpayment appropriately (see below) and Save.                                                                                                                         

4. Return to the Matching screen and match the bank transaction with both invoices.

Coding an overpayment

We recommend allocating the overpayment to a contra code to prevent inflation of farm expenditure records.

When you receive the next invoice from your supplier:

• The overpaid amount should appear as a credit balance.

• Code the credit amount back to the same contra code used earlier to offset the balance to $0.00.

To create a contra code:

• Go to Settings > Codes > Farm codes.

• In the OTHER section, create a New Extended code.

We recommend categorising it under Deferred Expenses and naming it Overpayment.                                                    

• Set the GST type to Exempt.
•  We recommend categorising it under Deferred Expenses and naming it Overpayment.

1. Set the GST type to Exempt.

2. Assign the KPI reporting group as Non-Farm Expenses (or similar) to avoid affecting the EFS report.