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triogirl66
October 12, 2022
Question

Applying payment to an invoice that is more than the invoice amount and refunding the difference.

  • October 12, 2022
  • 1 reply
  • 0 views

Hi ,

We had a customer make a down payment for a project that involved graphic design.(We charge by the hour for this.)

Our designer thought it would take longer to do this job than it actually did.

We do invoicing on 60%,(they pay the rest at the time of completion) and the customer paid this before starting on the project based on the order and the 5 hour design time.

When I changed the design time from 5 hours to 1.5 hours after the job was completed,  the amount of his downpayment(this was made a few weeks ago so it couldn't be deleted) ended up being more than what is actually owed so it would not let me apply the credit  to the full invoice ..

What is the best way to go about fixing this so we can refund his money?

 

1 reply

Adrian_A
Adrian_A
October 12, 2022

Thank you for the details, triogirl66.

 

I've got the steps on how you can refund a customer for their overpayment.

 

First, you'll need to issue a check using the Accounts Receivable account. Then, create a payment. Select the check and the existing credits.

 

Here's how:

 

To enter a 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.

 

Then, here are the 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 in handling customer credit or overpayment in QBO.

 

As always, feel free to open the topics from this link in case you need guides while working with QuickBooks in the future.

 

 

Let me know how things work on your end or if you have other concerns about customer refunds.

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