How to allocate a refund document to an overpayment?

This article covers allocating a refund document against an existing payment document where there has been an overpayment. The process works the same way in both the Sales Ledger and the Purchase Ledger. There are two methods available - allocating when raising the refund document, or using the Reallocate function after the refund has been raised.

Method 1: Allocate when raising the refund document

This method applies in both the Sales Ledger and the Purchase Ledger. When raising a refund document, any available payment documents - including overpayments - can be selected for allocation at the point of creation.

1. Navigate to the relevant ledger - Sales Ledger or Purchase Ledger
2. Select 'New ' and then choose the relevant refund document
3. Complete the refund document header details, including the supplier or customer and the amount
4. In the allocation section, you will see available payment documents for that account
5. Select the overpayment to allocate against the refund
6. Confirm the allocation and post the refund document

The refund document and overpayment are now matched. The balance on the account is updated accordingly.

Method 2: Allocate using the Reallocate function

Use this method in the Sales Ledger or Purchase Ledger when a refund document has already been raised and needs to be matched to an existing overpayment.

1. Navigate to the relevant ledger - Sales Ledger or Purchase Ledger
2. Locate the refund document
3. Open the document and select 'Reallocate'
4. You will see the available payment documents for that account, including any unallocated overpayments
5. Select the overpayment and confirm the allocation
6. Save the changes

The refund document is now allocated against the overpayment. Both documents reflect the updated allocation status.