An Unreconciled Overpayment Credit Note is automatically created by IntegraPay/Payrix when the following factors happen:

• the invoice is paid via Integrapay/Payrix (either manually via the portal or via scheduled auto-payment);
• the invoice is also manually paid by the customer (via EFT or credit card);
• the manual customer payment is the payment allocated to the original invoice.

This creates a discrepancy in the bank reconciliation as the double payment has not been managed correctly. 

To correctly manage IntegraPay/Payrix automatic Overpayments, it is important to understand both the Standard IntegraPay payment process and how the Overpayment is generated by a double payment of the same invoice.

Standard IntegraPay Process

When a sale invoice is paid via IntegraPay, the invoice payment is allocated to the IntegraPay Clearing account automatically by IntegraPay/Payrix. 
When InteraPay/Payrix settles the payment and deposits the funds in the bank account, a Receive Money transaction is created and posted to the IntegraPay Clearing account. 

Overpayments

However, if the invoice is double paid by both Integrapay/Payrix and the customer and the customer payment is allocated to the invoice, the IntegraPay payment process breaks down, creating an overpayment discrepancy flagged in the Bank Reconciliation report.

In the example below, the Bank Reconciliation report displays two unreconciled overpayment transactions.

The most accurate way to track the original overpaid invoice is by searching for the IntegraPay/Payrix Settlement where this payment was made. However, this may also be the most time-consuming approach and only required when the customer has many invoices for the same amount. The most effective way is by going into the customer's invoice activity in Xero and finding the invoice that was double paid.

1. In Xero, go to Contacts > Customers and find the customer whose invoice was double-paid
2. From the [Activity] Tab, select the [Invoices] Tab
   
   è  The Customer's Invoice Activity
   
   
   
   
3. Click to open the double-paid invoice
4. Once the invoice opens, click on the Payment link
   
   è  The Transaction Payment screen opens
   
   
   
   
5. As you can see, the payment allocated to the invoice is the customer's manual payment, which is incorrect
6. Click on [Options] > Remove & Redo
   
   è  The Customer's manual payment is removed from the invoice and will return as an unallocated bank feed transaction
   
   
7. Pay the invoice to the IntegraPay/Payrix Clearing account
   Note: make sure you use the same date as the overpayment
   
   è  The Receive a payment invoice section
   
   
   
   
8. Go to the Bank Account's Bank Feeds screen and match the customer deposit payment to the IntegraPay Overpayment Credit Note
   
   è  The Bank Feeds screen
   
   
   
   è  The overpayment allocation is now correct and the bank account reconciles