How do you deal with over payment in cash application?

To deal with overpayment in cash application, first, verify the payment details against the customer’s invoice and account records. If the overpayment is confirmed, communicate with the customer to determine their preference for resolution, which may include applying the excess amount to future invoices, issuing a refund, or crediting their account. Finally, update the accounting records accordingly to reflect the adjustment and maintain accurate financial reporting.