How to Handle an Overpayment of Rent in Xero

If a tenant has overpaid a rent amount, shown on the received panel left section of the bank feed in Xero, is greater than the rent due, you can allocate the overpayment to the tenants account by following these steps.

Step 1: 

Locate the transaction (rent invoice) using Find & Match

In this case the true cost of the rent was £300 but from the live feed we can the tenant has paid a fee of £850. We would first find and tick the £300 rent charge, as this is related to this payment as shown below. 

Step 2:

The next step is to add the overpayment amount. Click on 'New Transaction' and select 'Receive Money' as shown below in step 2. 

Step 3:

You will then be taken to the screen below, where you are creating the Overpayment. Select 'Overpayment' as the received as monies, Then ensure you are selecting the tenant contact that is mapped/linked back to Arthur in the 'from' box. Click 'Save Transaction.'

This will then create the overpayment transaction for the tenant, which in this case is an amount of £550, which will sit in the tenants account as a credit (owing back to the tenant). Both the payment (£300) and the overpayment (£550) will sync back to Arthur.