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Writer's pictureTek Siong, Hock

Customer Invoice Overpaid and Refund

Updated: May 27, 2022

When customer overpaid their invoices, due to the mistake or anything, we could use it to either pay for another invoice or refund.

There are 2 options to do refund in the Odoo.


Option 1: Register Overpayment and Use "Send Money" (Vendor Payment) to refund


a) Register the payment of $600 in the invoice ($525) and post the excess difference of $75 to the Account Receivable.



b) To refund, go to Customer Payment and enter the refund amount of $75. Choose "Send Money" and enter payment amount.


c) Once done, do the manual payment matching and reconcile.




Option 2: Journal Entry and Vendor Payment to refund


a) The overpayment will be created in the journal entry and posted.

CR 300 (Overpaid) to Trade Payable Account

CR 1200 (Invoice Payment Amount) to Trade Receivable Account

DR 1500 (Received Payment) to Bank Account

b) To refund, create a vendor payment with payment amount of RM300. Once confirmed, do the manual payment matching.



c) Reconcile the payment.

d) The CR 1200 (Account Receivable) in the step a) will appear in the invoice. Click Add to pay this invoice.












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