How to apply a check written as a partial refund of an invoice that is paid in full

Let me guide you through the steps on how to apply the check as a refund to the paid invoice, Shannonv1.

You can record a refund to your customer using Check or Expense if:

• They want to redeem their open credits.
• They made a prepayment for an order but canceled it before receiving the goods or services.
• They want you to reimburse an accidental overpayment.

If non of them applies to your situation, you can simply create a credit memo since the invoice was already paid. Here's how:

1. Click + New and select Credit memo.
2. In the Customer field, select the appropriate customer.
3. Enter the Credit Memo Date, Amount, Tax, and Product/Service (This is the category, product, or service you’re getting a credit for).
4. Select Save and close.

If the refund is an overpayment, you can browse this article: Record a customer refund in QuickBooks Online. Then, select Refund a customer's overpayment or credit for the steps.

In addition to this, QuickBooks helps you track customers' outstanding balances. That's why you can always run aging reports to see who are falling behind their payments, how much are still due, and how long they’re past due. Check out this article to learn how to pull up the statement: Run an accounts receivable aging report.

Keep me posted if there's anything else you need about recording the refund. I'll be right here to answer your questions.