How to record a deposit refund of an overpayment I did to a Long term Loan

Thank you for posting here on the Community page, @Bernardett.

I'm here to guide you on how to record these transactions in QuickBooks Online (QBO).

First, you need to issue a check to your customer using the Accounts Receivable account for the overpayment amount. Then, create a payment and select the check recorded and the existing credits.

Here's how to enter the check:

1. Open your QBO account, then select Check from the New (+) icon.
2. Pick the customer's name under the Payee section.
3. Under Category select Accounts Receivable, then enter the overpaid amount.
4. Save the check.

Once completed, follow these steps to link the check and the unapplied amount.

1. Open your customer's transaction list.
2. Click on the drop-down arrow under New transaction and choose Payment. 
3. On the Receive Payment window, select the check under the Outstanding Transactions section and the Unapplied Payment under the Credits.
4. Hit Save and close.

You can also check this article for other tips on how to handle customer credit or overpayment in QBO.

That should do it! For additional insights about processing customer's refund, you may check out these articles:

• Record a customer refund
• How to refund a deposit and close an invoice

Please don't hesitate to visit us here in the Community if you have other questions about clearing out your customer's balance. I'm always here to help.