Overview
When processing customer payments, situations may arise where a payment amount exceeds the invoice total, resulting in an overpayment. The TMS provides two flexible options for handling these overpayments:
Refund - Return the excess amount to the customer
Save as Credit - Store the excess amount for future use
Understanding Overpayments
An overpayment occurs when:
A customer pays more than the invoice amount
A payment is applied to fewer invoices than originally intended
An invoice amount is reduced after payment has been received
When linking invoices to a payment, the system automatically detects any unused payment amount and presents options for handling it.
Accessing Overpayment Options
Navigate to the payment that has an unused amount
When adding invoices to a payment, use the slider interface to allocate payment to invoices
If there's an unused amount, you'll see the overpayment handling options:
Unused amount is displayed clearly
Save as credit and Refund options appear below
What is a Refund?
A refund returns the overpayment amount directly to the customer through their preferred payment method. This is appropriate when:
The customer requests their money back
The overpayment was made in error
The customer won't have future invoices to apply the credit toward
How to Process a Refund
Select the Refund Option
Click the "Refund" button when viewing the unused payment amount
Complete Refund Details:
Amount
The refund amount is automatically populated (e.g., $21)
Verify the amount is correct
Reference Number
Enter a reference number for tracking purposes
This helps with accounting and audit trails
Date
Select the date the refund is being processed
Use the date picker to choose the appropriate date
Use Account
Select the account from which the refund will be issued
Choose from the dropdown of available accounts
Select Method of Payment
Choose the method that will be used for the refund:
Wire Transfer - Electronic bank-to-bank transfer
ACH Transfer - Automated Clearing House transfer
Check - Physical check mailed to customer
Cash - Cash refund (for in-person transactions)
Credit Card - Refund to the original credit card
Save the Refund
Click the Save button to process the refund
⚠️ Important: After saving, it's highly recommended to execute the refund as soon as possible
What is Credit?
Saving as credit stores the overpayment amount on the customer's account for future use. This is appropriate when:
The customer has ongoing business with your company
Future invoices are expected
The customer prefers to keep a credit balance
You want to simplify future payment processing
How to Save as Credit
Select the Save as Credit Option
Click the "Save as credit" button when viewing the unused payment amount
Review Credit Details
Total Amount
The credit amount is automatically populated (e.g., $21)
Verify the amount is correct
Understand Credit Usage
The system displays an information message explaining that credit can be:
Applied to new invoices - Automatically or manually offset future charges
Refunded to the customer - Converted to a refund at a later date
Save the Credit
Click the Save button to create the credit balance
Using Credit Balances
Once a credit is saved:
Can create payment from credit
Can refund credit
Common Questions
Q: Can I change a credit to a refund later?
A: Yes, if a customer changes their mind, you can convert a saved credit into a refund through the billing system.
Q: What happens if I partially use a credit?
A: The remaining credit balance stays on the customer's account for future use.
Q: How long do credits remain valid?
A: Credit balances remain on the account indefinitely until used or refunded. Check your company's policies regarding credit expiration.
Q: Can a customer have multiple credits?
A: Yes, multiple overpayments can create multiple credits that accumulate on the customer's account.
Q: How do I track executed refunds?
A: Use the reference number and date fields to track refunds.