I have an advance payment which I received i want to know how can I record a refund of a part of the advance amount.

I've got you back, @ess713. I'll go over how to record a refund of a part of your customer's advance payment.

We can utilize a cheque or expense to record the refund if they want to redeem their open credits or prepayment for an order but canceled it before receiving the goods or services and if they want you to reimburse an accidental overpayment. This way, it reduces your bank's balance and offsets the customer's open credit, overpayment or prepayment.

I'll show you how:

1. Go to + New then, select Expense, Add expense, or Cheque.
2. Choose the customer you want to refund from the Payee ▼ dropdown.
3. From the Payment account ▼ dropdown, select the bank account to which you deposited the overpayment.
4. From the first line of the Category column, select Accounts Receivable.
5. Enter how much you want to refund in the Amount field.
6. Fill out the other fields as you see fit, then select Save and close.

Once done, we can now link the refund to the customer's credit or overpayment. Here's how

1. Go to + New then, select Receive payment.
2. Choose the same customer you used for the cheque or expense when recording the refund.
3. Fill out the other fields as you see fit.
4. Under the Outstanding Transaction section, select the checkbox for the Expense or Cheque you created when recording the refund.
5. Ensure the payment is equal to the open balance, then select Save and close.

Please see this article for more details about recording a customer refund: Record a customer refund in QuickBooks Online.

When everything is all set, you'll want to check out this helpful reference to further guide you in organizing your transactions flawlessly: Categorise and match online bank transactions in QuickBooks Online.

Please keep me posted if you still have questions or concerns about your transactions or any QBO-related tasks. I'll be around for you. Have a great day!