Overpayment Process - Xero users with Vend Integration

The following process should be used when customer credit is to be created in Xero and applied to an invoice at a later date. The standard over payment feature is not suitable as Vend do not recognize the credit as a payment when it is applied to pay off the invoice, leaving the invoice as unpaid in the Vend system.

The process is broken into four steps.

1. Cash Code the receipt in the Bank account to 857 - Customer Credit account with the Customer Name as the Contact. 

2. Create a Credit Note for the overpaid amount just reconciled.  Go to Business > Invoices > New Credit Note

3. When another Sales Invoice for the customer is pushed across from Vend to Xero, you will be prompted that the customer has credit to use (based on the Credit Note you raised). Do not apply the credit the normal way. Use the "Make a payment" feature to mark the amount of credit against the 857 - Customer Credit. 

4. Go to the Credit Note and use the "Make a Cash Refund" feature to mark the customer credit used to the 857 - Customer Credit account. In the reference, add the invoice that the credit was applied to. Be careful if not all of the credit was used to only reduce the Amount by the correct value.

Watch the demonstration videos below for a clear example of the above process. 

Demo One: Customer Overpays and the amount is refunded to the customer. 

 

Demo Two: Customer Overpays and the amount is used as a credit