Overpayments in Xero

For account and payment-in-full type transactions, the Xero exporter is blissfully self explanatory.

However, when payments-in-advance, Bonds, Deposits, and Refunds come into play, there are some extra pieces of information you need to know set up a streamlines and unified experience.

Overpayments: The Difference Between HirePOS and Xero

In Xero, there is a firm rule: an invoice cannot have a negative value owing.

No such rule exists in HirePOS. As a result, an invoice with an an additional bond payed against it, or an invoice that has been adjusted to a value lower than what has been payed simply has a negative balance owing, and can have a refund applied to it, or can be converted to a credit note for future use.

In Xero, the same circumstance must result in a fully paid invoice, along with an overpayment record for the remaining value.

For this reason, Bonds, Deposits, and legitimate Overpayments in HirePOS are recorded as overpayment records in Xero

Bonds

Bonds are taken when you want to capture an additional amount on money in addition invoice total, for security reasons. See this article for more information Bonds. Following is an example workflow for receiving, exporting, and refunding bonds with HirePOS and Xero.

Invoice Before Payments
It is not possible to export a payment record (even a Bond) to Xero, without first exporting the invoice it relates to. Given that the vast majority of bonds will be recorded against on-hire invoices, it is advisable to avoid exporting these records to Xero unless unavoidable due to your business processes. More information available here: Why Can't I See My On Hire Invoices In the Xero Exporter?

Exporting Invoice with Payment-in-Full and an Additional Bond

  1. Create Invoice, Payment, and Bond Payment in HirePOS
    1. Create Invoice for $200.
    2. Receive a payment of $500 ($200 payment plus $300 bond)
  2. Export Invoice and Payments to Xero
    1. Export the Invoice (On Hire)
    2. Export the related payment Records (1x Payment, 1x Bond)

Result in Xero:

Invoice added to Xero, and marked as Paid In Full, and;
An Additional $300 Overpayment record is present on the customers file (with the description "Bond Received for HirePOS Invoice Number ###")

Refunding Bond recorded as OverPayment in Xero (From HirePOS)

  1. Refund Bond in HirePOS:
    1. Open the on-hire or returned invoice
    2. Press the red "refund" button down the bottom of the screen
    3. Process the bond refund and save.
  2. Export Refund Record to Xero
    1. Export the Payment record (Bond Refund) to Xero

Result in Xero:

The Overpayment Record is negated, marked as "paid" with cash refund in Xero.

Deposits

When you want to capture payments leading up to the final payment-in-full, you will need to record deposit records. Deposits are treated as "partial payments" in both HirePOS and Xero.

Note:
Should the sum of all deposits and payments against an invoice equal the total value of the invoice, Xero will mark the invoice as Paid. At this point, no further changes to the invoice or related payments are possible via the exporter.
For large deposits, non-refundable deposits, or deposits received months in advance, consider using this method when recording deposits: Deposits Received in Advance. This method works excellently with Xero, as individual invoices are created for each deposit, and as such, the final invoice does not need to be exported until the job is complete.

Exporting Deposits

Exporting Invoice with and a deposit payment

  1. Create Invoice and Deposit Payment in HirePOS
    1. Create Invoice for $200.
    2. Receive a payment of $50 (deposit)
  2. Export Invoice and Payment to Xero
    1. Export the Invoice (On Hire)
    2. Export the related payment Record (1x deposit)

Result in Xero:

Invoice added to Xero, and marked as partially paid

Refunding Deposit

If the invoice has not been paid in full, you can create a refund record in HirePOS, and export it to Xero to refund the partial payment. If the invoice has been paid in full, this is not possible, and an additional credit note will need to be raised, payed out, and exported to Xero.

  1. Refund a partial payment in HirePOS:
    1. Open the booking/invoice
    2. Press the dropdown menu next ot the "payment" button at the bottom of the screen
    3. Select Refund Payment from the menu
    4. Process the refund and save.
  2. Export Refund Record to Xero
    1. Export the Payment record (Deposit Refund) to Xero

Result in Xero:

The Payment Record is refunded, and the invoice amount owing increases proportionately.

Overpayments

Legitimate overpayments can occur in HirePOS, but are represented differently than in Xero. In HirePOS, the Amount Paid will simply be greater than the Invoice Total and as a result, the Invoice will show as owing a refund to the customer. In Xero, the Invoice will be marked as Paid and an additional Overpayment record is created.


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