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SueGarcia
May 6, 2022
Question

Transfer a customer's overpayment to an accounts payable account.

  • May 6, 2022
  • 1 reply
  • 0 views

Hello, I need help. I have a customer who made an overpayment to her account. She has asked me to transfer the credits to an accounts payable account that is not in her name. How do I go about doing this. I use QB Pro 2016 desktop version. Thank you.

1 reply

MarsStephanieL
MarsStephanieL
May 7, 2022

Hi there, @SueGarcia. Thank you for taking your time posting in the Community. I can help you assign the amount to the other customer in QuickBooks Online (QBO).

 

Currently, the option of transferring the overpayment fund to the other customer is unavailable. As a workaround, you can create a refund check for the customer and then receive it as a credit to the other customer. You can take note of the description in the Memo field for documentation.

 

First, record the customer's payment. Here's how:

 

  1. Go to + New and click Receive payment.
  2. Enter the actual amount you receive below the header, not in the line item.
  3. Select Save and close.

 

Then, create an Expense or Check transaction to record the refund.

 

  1. On the dashboard, click + New and select Expense or Check.
  2. Enter the name of the customer with an overpayment.
  3. In the Category column, select Accounts Receivable and enter the overpayment amount in the Amount column.
  4. Select Save and close.

 

After that, link the refund to the customer's overpayment:

 

  1. Create a Receive payment transaction and enter the customer's name.
  2. Check the box beside the Expense or Check you created when recording the refund.
  3. Verify the details and select Save and close.

 

This is what the process looks like:

 

 

Once done, create a credit memo to the other customer. Here's how:

 

  1. Go to + New and select Credit Memo.
  2. Enter the amount and the other customer's name.
  3. Click Save and close.

 

I've included some articles that you can check out about the process I've shared:

 

For future reference, you can visit quickbooks.intuit.com. It contains more details on narrowing down the data you want in your reports and focus on the details that matter the most.

 

I'll be around if you need further assistance with the steps I've shared above. Please don't hesitate to reply, I'm here to back you up. Take care and more power to your business!

S
SueGarciaAuthor
May 11, 2022

@MarsStephanieL 

 

Thank you for your response.  To be honest with you, I am still confused.  The transfer would be from a customer's accounts receivable account to a vendor's accounts payable account.  Remember that the situation is that the customer made an overpayment and she wants this transferred to vendor's account.  I am using Quickbooks Pro 2016.  Would appreciate further assistance.  Thank you greatly.

L
LeizylM
May 11, 2022

Hi there, SueGarcia.

 

A Clearing Account is used to move money from one account to another when you can't move the money directly. That said, you can create one since it will be used in Journal Entry. 

 

Here's how to set up a clearing account:

 

  1. Click List at the top menu bar, then choose Chart of Accounts.
  2. Press CTRL+N on your keyboard to create a new account.
  3. Choose Bank and hit Continue.
  4. You can enter Barter Account as the name and click Save.

 

To use a clearing account:

 

  1. Create a journal entry.
  2. Add the AR or AP from which you are moving money.
  3. Add the Clearing account.
  4. Save the Journal Entry.
  5. Create a second Journal Entry.
  6. Add the Clearing Account.
  7. Add the AR or AP account to which you move money.
  8. In either Pay Bills or Receive Payments, link the Journal Entries together.

 

I've added an additional article to learn more about Transferring credit to another customer: Transfer and apply for credit from one vendor to another in QuickBooks Desktop. 

 

Let me know if you have further questions about handling A/R ad A/P transactions in QuickBooks. I'll be around to help you more. Have a nice day ahead.

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