How to deal with supplier OVERPAYMENTS in Xero

From my MASTERING PURCHASES IN XERO online course.
In this video I show you how to deal with any payments you make to suppliers in advance of being invoiced. I also explain once the invoice is received, how it gets matched against the overpayment.

Want to learn more?
You can have lifetime access to the online course MASTERING PURCHASES IN XERO using this link:

2019 UPDATE
The Xero menus have been updated since this video was recorded.

To access Reports from the Dashboard you now choose:
Accounting
Reports

I hope you still enjoy the video.
Until next time, happy xero-ing :-)

[jasonpeckham]

Very helpful. Could you do a video on the best way to deal with an overpayment made prior to using Xero and entering this into the conversation balances?

[johngaston]

Fantastic I did not know about the overpayment option . Very useful .Thankyou for making the video.

[nathraedourden]

What if the bills are imported via HubDoc, and not created manually. How do you allocated the credit from the overpayment?

[fionamckinlay]

very helpful, however when I did this, Xero didn't recognise the overpayment and match it to another bill from the same supplier so I am unable to allocate it?