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robbin-taylor
January 11, 2024
Question

Zero inventory, but oversold by one or two pennies.

  • January 11, 2024
  • 1 reply
  • 0 views

I have several inventory items that have zero quantity, but show negative dollar amounts by one or two pennies. I think I know why this is, as we have made the mistake of billing 50% of invoices for upcoming equipment orders, instead of invoicing for parts only. This has cut parts prices in half with the other half invoiced upon job completion. However, some don’t come out correctly and are off by a penny or two on the final invoice. For instance, $692.25 was billed twice at 50% as $346.13, overselling the product by $0.01. Do I need to issue a credit memo for the few pennies to the customer, or is there another way to take care of this?

 

Since this is not an addition of inventory, but rather on the invoicing side, I am not sure how to take care of this.

1 reply

MariaSoledadG
MariaSoledadG
January 11, 2024

Let me help you record the refund for your inventory, Robbin. 

 

If the customer has overpaid, you don't have to enter a credit memo as you already have an unapplied credit that acts as your credit memo. You can record a refund to your customer using Check or Expense. I'll show you how:

 

  1. Click + New.
  2. Select Expense, Add expense or Check. If you're in the Business view, follow the steps to switch to Accountant view first. Then come back to these steps.
  3. Select the customer you want to refund from the Payee ▼ dropdown.
  4. From the Payment account ▼ dropdown, select the bank account to which you deposited the overpayment to.
  5. On the first line of the Category column, select Accounts Receivable.
  6. Enter how much you want to refund in the Amount field.
  7. Fill out the other fields as you see fit, then select Save and close.

 

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

 

  1. Click + New.
  2. Select Receive payment.
  3. Select the same customer you used for the check or expense when recording the refund.
  4. Fill out the other fields as you see fit.
  5. In the Outstanding Transaction section, select the checkbox for the Expense or Check you created when recording the refund.
    Note: If you have automation to apply bill payments turned on, this step is done for you.
  6. Make sure the payment is equal to the open balance, then select Save and close.

 

For more details on how you can refund our customers, read this article for more information: Record A Customer Refund In QuickBooks Online.

 

Additionally, QuickBooks downloads the latest transactions automatically and even suggests categories for these transactions based on how you and other customers categorized similar transactions. You'll have to make sure to correctly add and match them. I've got this article for future reference: Categorize Online Bank Transactions In QuickBooks Online.

 

Fill me in if you need further assistance with overpayment or processing a refund. I'll always be right here if you need help. Have a great day ahead!

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