Overview
When customers overpay invoices by small amounts, Kolleno automatically creates the necessary NetSuite journal entries to write off these overpayments, eliminating manual journal entry creation and ensuring clean account balances.
This implementation is based on this NetSuite article.
The Problem
Customer pays $100.50 for a $100.00 invoice → $0.50 overpayment needs to be written off → Manual journal entries required to balance accounts.
Prerequisites
Configure your General Ledger Mapping with:
Accounts Receivable Category: Your A/R account
Write Off Category: Your miscellaneous income or preferred write-off account
Kolleno's Automated Solution
When Kolleno detects a customer overpayment that needs to be written off, it creates a NetSuite journal entry:
Overpayment Write-Off Journal Entry:
Debit: Accounts Receivable Account - $0.50 (linked to customer)
Credit: Write Off Account (Income) - $0.50 (linked to customer)
Journal Entry Application:
After creating the write-off journal entry, Kolleno automatically includes it when processing the customer payment reconciliation (from the "Credit" subtab).
This ensures the overpayment is properly written off and your accounts receivable balance reflects the correct amount owed by the customer.