When you have an overpayment for a bill, and you want to apply this overpayment to a different bill, please find the steps below.

In the example, bill #2 is overpaid, bill #1 is unpaid, and we will apply the overpayment amount of $38 to bill #1:

1. Reallocate overpayment from AR to Unbilled disbursement by selecting Enter Refund:

2. You need a new payment type, if you don’t have one. You may also name this payment type as the name you like, but with same settings as the example below:

3. Write a general cheque with amount of $38 as in below. This cheque posted to client as disb.
#2: payment type is CM
#3: Reference Number: use C and client #
#4: Payee is your firm general bank
#8: disb code: always 999, non-taxable

4. Enter a bill payment of $38 to bill #1 as in below: