A customer had made a overpayment to me as he suppose to pay two supplier. How would i adjust this as i already transfer back part of the payment to other supplier.

Hello jackson-chan-reg,

Thanks for posting in the Community!

You can allocate the refund for the overpayment using an Expense transaction and allocate it to Accounts Receivable. Here's how to:

1. Click on the + New.
2. Select on Expense.
3. Select the customer you've processed the refund under the Payee field.
4. Under Payment account select the bank account where you initially deposited the overpayment.
5. Under Category fields use Accounts Receivable.
6. Enter the amount refunded.
7. Click on Save and close.

If the payment was downloaded in the bank transactions tab, you can categorise it as expense and use the same account under Accounts Receivable.

Check this link to learn more about recording customer refunds in QBO: Handle customer overpayments in QuickBooks Online.

Keep on posting here if you need anything else. Stay safe!