New Feature: Batch Payments Overpayment

Batch Payments - Allow Overpayment

We have redesigned 'Prepayments' flow, to allow a batch payment to have overpayments. This was required to handle the way that a 'Prepayment' in Xero was being allocated to the Bank Account, which could cause further reconciliation issues in the event that a batch payment was amended to include a overpayment after the bank was already reconciled.

What it Means

The re-defined Wise-Pay process will then in turn allocate the accounting transactions in the form of a payment invoice and a credit note that can be allocated to future invoices in the accounting system. This allows the effective management of liability, giving you the same output as a simple AR credit on account,  which can be applied to a future invoice (s).  The credit raised through this process can then be applied to future invoices or down-payment invoices raised in ConnectWise and allows for the correct handling of the liability on the balance sheet.

What it does

There a two scenarios where an overpayment is created.

Batch Amount is greater than Payment Applied amounts

When a batch amount is greater than the amount being applied to invoices, a Wise-Pay Overpayment will be created to handle the additional amount being collected from the customer as an overpayment.

An invoice is removed from an existing batch payment, an no further invoices are available to apply a payment to and a Overpayment is required to bring the batch into a balanced state.

When the batch amount collected from the customer is not equal to the payment amount being applied to all invoices in the batch, a batch overpayment can be created in the batch management screen.

A batch payment 'Overpayment' will go through the following three steps when created:

Step 1: Create Invoice for Payment (Liability Debit to take up the liability and allow for payment via Wise-Pay Clearing Account.)
Step 2: Create Credit Note (Liability Credit from prepayment account to Credit Note)
Step 3: Apply Credit Note (to future invoices)
Step 4: User initiated Payment Sync will then apply payment to ConnectWise Invoice. (Applied Liability from credit note to invoice - Revenue)

Note: A Credit Note created by Wise-Pay for the purpose of Overpayments created by Wise-Pay will sync back to ConnectWise as part of the Payment Sync.  You will not need to create any further transactions in ConnectWise. Wise-Pay created Overpayments will also sync as payments to ConnectWise as is the case for Pre-Payments created directly in the accounting system.

What configuration is required

The process is slightly different for Xero and QuickBooks online, refer to the Knowledgebase Articles for your referenced accounting package

Overview of a Creating a Batch Overpayment

1. Log into Wise-Pay

2. Click Pay Now

3. Select Invoice Batch

4. Search for a Payer

5. Enter the amount you wish to pay in Batch Amount

6. Allocate the respective amounts to each invoice

If there is a remaining amount, an over payment will be created

Additional Resources

Wise-Pay Feature Release Webinar V1.3.3

Did you find it helpful? Yes No

Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.