How to Resolve Overpayments in Cin7

Title:

How to Resolve Overpayments in Cin7

Summary:

This guide shows you how the overpayment can be refunded to the customer or converted into a customer credit which the customer can use against future invoices.

Prerequisites

  • Cin7 is integrated with Xero
  • Account mapping is configured in Cin7
  • A service item (e.g., Refund) is set up in the product card if required
  • User has access to create credit notes and refunds in Cin7 and reconcile transactions in Xero

Steps


Overview

Cin7 only allows payments that are equal to or less than the invoice amount.

If a payment exceeds the invoice total, Cin7 will trigger a sync error stating “Payment exceeds the document amount”, and the payment will not sync to Xero.

Any excess payment must be handled as an overpayment, which can be:

  • Refunded to the customer, or
  • Converted into a customer credit for future use.

Sample Scenario

  • Customer Invoice: $50
  • Customer Payment: $60
  • Overpayment: $10

Option 1: Refund the Overpayment to the Customer

  1. Create a Credit Note in the same sales order (Simple Sale or Service Sale) for the overpayment amount.

  1. Go to the Credit Note tab and click Copy from Restock/Invoices.
  2. Under the Price column, enter the overpayment amount and click Authorise.

Note: If the credit note is not linked to a specific product or service sold by the organization, do the steps below:

Under Additional Charges and Services:

    • Select Refund (set up as a service item).
    • Enter the quantity and price.
    • Click Authorise.

  1. Scroll to the bottom and click +Refund.
  2. Enter the refund details:
    • Bank account
    • Reference
    • Date
    • Refund amount

  1. Once synced, the credit note and refund will appear in Xero.

  1. The credit note will be marked as paid using the bank account details from Cin7, but it will appear as Unreconciled in Xero.

To reconcile it:

    • Open the bank account,
    • Find the matching $10.00 transaction
    • Click OK.

Option 2: Convert the Overpayment to Customer Credit

  1. Create a Credit Note in the same sales order for the overpayment.

  1. Click Copy from Restock/Invoices, enter the overpayment amount, and Authorise.

Note: If the credit note is not linked to a specific product or service sold by the organization, do the steps below:

Under Additional Charges and Services:

    • Select Refund (set up as a service item).
    • Enter the quantity and price.
    • Click Authorise.

  1. Scroll to the bottom and click Customer Credit.

4. Enter the required details:

    • Reference
    • Date Paid
    • Amount

Cin7 will record the customer credit as follows:


Result:

  • The overpayment is recorded in Xero under the Customer Deposit (liability) account.
  • The account used can be configured under Settings > Reference Books > Account Mapping in Cin7.

Once synced, the customer credit will appear in Xero.


Using Customer Credit on Future Orders

  1. When invoicing a new order, Cin7 will prompt that customer credit is available.

  1. Click Yes! to apply the credit.
  2. Select the available credit and click Add & Save.

  1. The credit is applied to the invoice.

  1. The payment will appear in Xero using the bank account and the customer credit

Customer Deposit Account Impact in Xero:

  • Increase: When an overpayment is used as a customer credit for future invoices.
  • Decrease: When the customer credit is used as a full or partial payment for future invoices.

Reconciling Overpayments in Xero

  1. Go to the bank account and click Find and Match.

  1. Search for the invoice using the invoice number or customer name.

  1. For the overpayment amount, click New Transaction > Receive Money.

  1. Select Overpayment as the received type.
  2. Enter the reference and save.

  1. Review and click Reconcile.

Important Notes

  • Cin7 does not allow payments greater than the invoice amount.
  • Overpayments must always be handled through credit notes.
  • Customer credits are recorded as liabilities until applied to future invoices.
  • Refunds must be manually reconciled in Xero.

Common Issues


Issue: Payment not syncing to Xero

Cause: Payment exceeds the invoice amount in Cin7

Fix: Create a credit note and process the excess as a refund or customer credit.


Issue: Credit note not linked to a product

Cause: Overpayment is not related to a specific item

Fix: Use a Refund service item under Additional Charges and Services.


Issue: Customer credit not appearing on new orders

Cause: Credit exists but was not applied during invoicing

Fix: Apply the available credit when prompted during the invoice stage.


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