Skip to main content
Documentation
Documentation
Administrator Guide
Last Updated: 2024-03-08
Steps: Record Customer Overpayments

Steps: Record Customer Overpayments

  • Record a customer payment that is greater than the invoice amount.
  • Place a payment amount on account.
  • Configure an account posting rule set for receivables overpayment.
  • Security:
    Process: Customer Overpayment
     domain in the Customer Accounts functional area.
You can record customer overpayments to write off small balances without creating an invoice debit adjustment.
You can use overpayments as a transaction type to write off small balances either:
  • At the time, of payment application.
  • After you apply a payment with on-account balance.
Workday creates a new journal entry for overpayments to:
  • Reverse the amount placed on-account.
  • Credit the ledger account defined in the account posting rule.
Workday doesn't track overpayment by invoices.
  1. Access the
    Maintain Receivables Overpayment Reasons
     task.
    Create at least 1 overpayment reason.
    You can't delete an overpayment reason that's in use. But, you can change its status to
    Inactive
    .
    Security:
    Set Up: Receivable Overpayment
     domain in the Customer Accounts functional area.
  2. (Optional) Edit Business Processes.
    Configure the
    Customer Overpayment Event
     business process if you want to add a step for approving or rejecting an overpayment.
  3. Apply the customer payment.
    As you complete the task, consider:
    Option Description
    Amount to Place On-Account
    Enter an amount greater than zero.
    Record Overpayments
    Select the check box.
    Overpayments tab
    When you enter an overpayment amount, Workday uses machine learning to display recommendations for the overpayment reason, as well as the cost center and location worktags.
    Workday automatically populates the top recommendation for the overpayment reason in scenarios of high prediction accuracy.
    You might need to take additional steps to enable this feature depending on your organization's subscription service agreement. For more information, see this Community article.
Workday can route the overpayment for approvals.
Workday adds a
Customer Overpayment Activity
 tab on the customer payment transaction page to help you track overpayment details. You can also cancel the customer overpayment by accessing it from the related actions menu.
  • Edit a customer overpayment. You can do so only when it's in a draft status.
  • Cancel an approved customer overpayment from the
    Customer Payment Overpayment
     related actions menu on the
    Customer Overpayment Activity
     tab of your payment transaction. When you cancel a customer payment, Workday automatically cancels all associated overpayments.
  • When you cancel an overpayment, Workday reverses the journal entry and recalculates the on-account amount associated with the payment.