How to Process Overpaid Invoices in Xero using Remittance Go
When a remittance shows a payment that exceeds the invoice amount in Xero, Remittance Go flags it so you can investigate and correct it before pushing to Xero.
When a remittance shows a payment that exceeds the invoice amount in Xero, Remittance Go flags it so you can investigate and correct it before pushing to Xero.
Step 1: Remittance Go Flags the Overpayment
After uploading your remittance advice, Remittance Go matches each payment line against your open invoices in Xero. If the amount paid on the remittance is greater than the amount due — for example, the remittance shows $125 but the invoice in Xero is for $110 — that line is flagged with a red Overpaid warning.
This is a hard stop. Xero does not allow a batch payment line to exceed the Amount Due on an invoice, and attempting to push it through will result in an error. You will not cause any damage by trying — it simply will not process — but the overpayment must be resolved before the payment can be created.
Step 2: Identify Why It Is Overpaid
Before correcting anything, determine why the payment exceeds the invoice total. Common reasons include:
- Human error — the customer intended to pay the invoice amount but entered the wrong figure in their payment run
- Rounding differences — the customer's system rounded the payment up by a small amount, such as $0.01, resulting in a minor overage
The reason matters because it determines how you correct it.
Step 3: Correct the Overpayment
If It Was Human Error
If the customer simply paid the wrong amount and the correct payment should equal the invoice total, you can manually edit the PDF paid amount directly in Remittance Go. Lower the figure to match the Amount Due in Xero, then continue processing as normal.
If It Is a Rounding Difference
A $0.01 rounding overage is a common occurrence when a supplier's payment system rounds differently to your invoicing software. This requires a slightly different approach — see the tutorial How to Handle 1 Cent Remittance Adjustments in Xero using Remittance Go for step-by-step instructions.
Step 4: Push to Xero
Once the overpaid amount has been corrected and the payment line matches the Amount Due, the red warning will clear. You can then proceed to create the batch payment in Xero as normal.
How to Process Underpaid Remittance into Xero
See how Remittance Go handles underpayments — where a customer pays less than the invoice total — and how to process these exceptions cleanly in Xero.