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Beylee
August 12, 2020
Solved

Refund to Customer on Overpayment

  • August 12, 2020
  • 4 replies
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I have a customer that overpaid an invoice and now have a credit on their account. They want us to send them a check for the credit. How can I do that with QuickBooks Online so that the credit is refunded from that customer's account?

    Best answer by Angelyn_T

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

     

    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 a 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.

     

    Mention my name in the comment section below if you have any other questions. I'm always here to help you out. Keep safe always!

    4 replies

    Angelyn_T
    Angelyn_TAnswer
    August 12, 2020

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

     

    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 a 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.

     

    Mention my name in the comment section below if you have any other questions. I'm always here to help you out. Keep safe always!

      B
      BonBon004
      August 28, 2020

      Can I use this same method if I just issued a credit right to the customer's credit card? How do I record that in QB?

      M
      Maybelle_S
      August 28, 2020

      Thanks for joining the thread, @BonBon004.

       

      Yes, you can follow the steps given by my colleague, @Angelyn_T to create a check and payment. Then, select the check recorded and the existing credits.

       

      Once done, you can also follow the steps on how to link the check and the unapplied amount.

       

      For more information, you can visit this link: Handle a customer credit or overpayment in QBO.

       

      You can also take a look at here on how to void or refund customer payments in QuickBooks Online.

       

      Feel free to drop a comment below if you have other questions. I'm always happy to help. Take care!

      M
      MerryK
      November 20, 2020

      Customer sent a check that was deposited, creating a overpayment.  We dont send check but ue ACH for payments.  How do we transfer the refund via ACH instead of a physical check?   

      N
      Nick_M
      November 20, 2020

      Hey there, MerryK. 

       

      Thanks for dropping by the Community this morning, I'm more than happy to help. If you want to refund your customer for the overpayment, you can follow these steps:

       

      Step 1: Record the refund for your customer:

      1. Select  the + New button.
      2. Click Expense, Add expense or Check. Also, It's important that you're in  Accountant view when you complete these steps.
      3. Select the customer you want to refund from the Payee ▼ drop-down.
      4. From the Payment account ▼ click drop-down, select the bank account where the overpayment was deposited too.
      5. On the first line of the Category column, select an Accounts Receivable.
      6. Enter how much you want to refund in the Amount field.
      7. Fill out the rest of the field as desired, then select Save and close.

       

      Step 2: Link the refund to the customer's credit or overpayment:

      1. Select + New again.
      2. Click Receive payment or Receive invoice payment.
      3. Select the same customer you used for the check or expense.
      4. Fill out the other fields as desired.
      5. Under the Outstanding Transaction section, click the checkbox for the Expense or Check that you created.
      6. Make sure the payment is equal to the open balance, then select Save and close.

      And that's it. I'm providing a link below to the steps shown above as-well-as a tutorial video on the entire process. 

      If you have any other questions or concerns, or need further assistance, please don't hesitate to reach out here. Thanks again and have a lovely day.

       

      A
      Agoldensummer
      January 16, 2023

      I just spent an hour on chat support for this very reason.  

      Here is what you do.

      1) Create a new check (see attached example).

      Payee is the client/job.

      Category is Accounts Receivable

      Amount is refund amount

      Customer is client/job.

      2)  Go to client's payment and this new check should now be sitting in the list of Outstanding Transactions.  Check the box next to your new check and the overpayment should zero out.

       

       

      Daniela_A
      Daniela_A
      April 12, 2023

      I appreciate your effort in adding the screenshot, @margiebelle.

       

      Let me shed some light regarding this issue.

       

      The reason why the check isn't showing in the outstanding transaction is that the Accounts Receivable is associated with a different CUSTOMER/PROJECT which is the 2023 Education Productions-. To ensure that you'll have the data you need, you'll want to base the customer/project linked to the check, and not the payee. See Screenshot below:

       

       

      That's all there is to. Additionally, here are some articles you can read for ideas about how you can work with your sales in QuickBooks: Sales and Customers for QuickBooks Online.


      If you have any other questions or concerns, or need further assistance, please don't hesitate to reach out here. Thanks again and have a lovely day.

        M
        margiebelle
        April 12, 2023

        I removed the customer/project and that fixed it.  Thank you so much!

         

         

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