A customer has overpaid by £10.80. They want a credit note as it is their year end. We can't raise a credit note can we?

I'm here to provide information about the overpayment from your customer in QuickBooks Online, Nicola. Let's resolve this together.

Extra payments from your customer will be used to settle their next invoice. There's no need to create a credit note, as the excess amount will automatically be credited to their account.

You also have the option to issue a refund or return the money, which can then be applied to the unapplied payment to bring the balance to zero.

1. Go to + New and click Expense.
2. Enter the customer name in the Payee field.
3. In the Payment Account field, select the bank to which you deposited the duplicate payment.
4. On the first line of the Category column, select Debtors (Accounts Receivable).
5. In the Amount field, enter the amount of the refund.
6. Fill out other necessary information as you see fit, and click Save and close.

Next, let's link the refund to the customer's credit or overpayment:

1. Go to + New and select Receive payment.
2. Select the same customer and fill out other fields.
3. Under the Outstanding Transaction section, check the box for the Expense or Check you created when recording the refund.
4. Once done, select Save and Close.

Moreover, you can run reports to get an overview of your business finances.

Let us know if you have any other concerns regarding the overpayment in QBO. We are here to assist you in any way we can.