Customer refunds

Let me help you sort out the overpayment from your customer, @ke108.

You can either leave the overpayment as is and apply it the customer's future invoices, or create a refund for the overpayment.

Here's how to create a refund:

1. Go to the New icon (+).
2. Choose the Refund receipt or Give a refund
3. Select the name of the Customer drop-down.
4. From the Refund From drop-down, select the bank you deposited the payment for the invoice too.
5. Add all products or services the customer returned in the Product or Service column.
6. Enter the complete refund details.
7. Click Save and close.

The other way is to create a cheque to record the refund and reduce the balance of the account where the overpayment was deposited. Also, it offsets your customer's overpayment. Here's how: 

1. Go to the New (+) icon.
2. Choose Cheque.
3. In the Payee column, select the customer.
4. Choose Accounts Receivable in the Category column.
5. In the Amount column, enter the overpayment amount. 
6. Click Save and close.

Once completed, you can pair the check with the credit or overpayment. Here's how:

1. Go to the New (+) icon.
2. Choose Receive Payment.
3. Enter the necessary information. 
4. Under Outstanding Transactions, choose the Cheque that you created.
5. Select the Unapplied Payment under Credits. 
6. Make sure Amount Received is zero.
7. Click Save and close.

You can use this article for more detailed insights: Record a customer refund in QuickBooks Online.

Swing by here if you have other questions. I'm always here to help you with managing your unapplied cash payments.