How to transfer the customer extra payment to other income?

I know a way to move your customer's overpayment to another income account in QuickBooks Online (QBO), tass.

First off, let's clear this extra payment or credit from your customer's balance by creating a journal entry (JE). In this process, credit will be moved to another income account. Here's how:

1. Click the + New icon and select Journal Entry under the Other column.
2. From the transaction page, select the income account where you want to move the credit.
3. Enter the amount under the Credit column.
4. In the next line item, select the Account Receivable (A/R) and enter the same amount under the Debit column.
5. Select the closing customer under the Name column along with the A/R account.
6. After that, click Save and Close.

After that, let's use the Receive Payment feature to zero out the credit under the customer. Please follow the steps below:

1. Go to the + New icon and select Receive Payment.
2. Select the customer from the dropdown and mark check the Journal Entry we recently created.
3. Scroll down to the bottom and select the Unapplied Payment under the Credits section.
4. Then, click Save and close.

Once done, you can run a report of your income account to verify the transfer of the credit. You can also customise this to display data according to your business needs.

Tag me if you have additional queries about managing customer transactions. I'm always around to lend a hand for help. Take care!