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How to account for overpaid invoices

Normally if the amount due on an invoice is edited, the Direct Debit payment is automatically cancelled and a new one is created in GoCardless. However, if the payment has been submitted to the banking system, cancelling the payment would not be possible. This can result in the invoice being overpaid by the customer.

As the amount collected is higher than the amount due on the invoice, we are unable to mark the invoice as paid on our side in Xero, and the invoice will remain outstanding.

There are two options to resolve this: 

1. Changing the amount due on the invoice

One option would be to change the amount of the invoice so that it matches the Direct Debit payment amount. This can be done by editing the amount or removing any added credits. Once this has been done please contact our support team to request that we send the information manually to Xero, so that the invoice is marked as paid by GoCardless for Xero.

2. Manually allocating a payment to the invoice (for the amount due)

Alternatively, you can manually allocate a payment to the invoice, for the amount due. We have a help guide on how to do this here. The second step would be creating an overpayment for the additional amount collected by the Direct Debit payment.

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