There are two options within MechanicDesk for an overpayment or deposit


Each Method has its own Pro's and Con's, if you are not integrated with an accounting package, you should follow method 1.

If you are integrated you can use either, just be aware the overpayment will not show in your accounting software immediately, if you use method 1.



1(The Simpler Method)


A) Create a bulk customer payment by navigating to invoices & bills

B) Then select Customer Payments tab 

C) Select new payment to the right of the screen. 

D) Allocate enough to fully pay the current invoice and leave the remaining (overpayment) unallocated which can be used in the future for this customer.



**Tutorial 21, this will help to explain bulk customer payments 

https://www.youtube.com/embed/-zmqByT_pwo?vq=hd1080&autoplay=1


If you integrate With Xero


MechanicDesk will not sync the bulk payment as one big payment, the payment is synced to Xero when the invoice is finalized so potentially, you will see, in Xero, multiple small payments (each represents an allocation to an invoice in MechanicDesk). This might cause some difficulties with payment reconciliation.


If you integrate With MYOB or Quickbooks Online


MechanicDesk will sync the payment as one payment, but only sync the payments to MYOB or Quickbooks when it is fully allocated, so the invoices might be your accounting as unpaid until the payment is fully allocated in MechanicDesk.





2.(Use Credit Note)


This method treats the payment as a deposit, and use credit note to represent the customer's credit.


A) Create an invoice for the customer for the full amount of the prepayment/deposit in M.D. (add a line item of "Deposit" with the full amount.

B) Apply a payment of this amount fully to this invoice.

C) Finalize the Invoice you have just paid off fully.

D) Create a credit note for that customer in M.D. for the deposited(excess) amount. 

E) Allocate the credit note to the outstanding amount, leaving the remaining credit for future invoices


After (C) step, you will have an invoice and a payment of the full amount in the accounting software ready for reconciliation


After (D) and (E), the credit note and credit note allocation will also sync to your accounting software. Your customer's balance is the same on both sides.


This method requires an extra step, however, it syncs nicely with any accounting software you integrate with.