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findjerry
November 21, 2024
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How do I issue a refund for a duplicate payment on an invoice?

  • November 21, 2024
  • 1 reply
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I am new to using QBO, so please pardon the newbie question. 

I have a client that sent 2 separate checks to pay for the same invoice. I mistakenly deposited the duplicate check into my checking account. When I went to enter the deposit into QBO I realized my error. 

The client would like me to write him a refund check in return. How do I go about doing this in QBO? I am a complete newbie, so I need simple advice. 🙂

Thanks, 

Jerry


Best answer by AdonL

I'm thrilled to have you here today, Jerry. Let's get your customer's overpayment refunded in QuickBooks Online (QBO).

 

Reimbursing an accidental overpayment from your clients using a Check reduces your bank's balance and offsets the customer's open credit or overpayment. To get you going, here's how:

 

  1. Go to the +New button.
  2. Under Vendors, select Check.
  3. Select the client you want to refund from the Payee drop-down arrow.
  4. From the Bank Account drop-down menu, choose the bank where you deposited the overpayment.
  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, then hit Save and Close.

 

You can check out this article for a complete guide to this process: Record a customer refund in QBO

 

Additionally, I've got these handy resources to help you ensure data inside your company stays accurate.

 

 

Thanks for dropping by today, Jerry. Return to this post if you have other questions about handling customer overpayment. I'll get back to respond to them. I'll be here, ready to help you. Take care!

1 reply

A
AdonLAnswer
November 22, 2024

I'm thrilled to have you here today, Jerry. Let's get your customer's overpayment refunded in QuickBooks Online (QBO).

 

Reimbursing an accidental overpayment from your clients using a Check reduces your bank's balance and offsets the customer's open credit or overpayment. To get you going, here's how:

 

  1. Go to the +New button.
  2. Under Vendors, select Check.
  3. Select the client you want to refund from the Payee drop-down arrow.
  4. From the Bank Account drop-down menu, choose the bank where you deposited the overpayment.
  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, then hit Save and Close.

 

You can check out this article for a complete guide to this process: Record a customer refund in QBO

 

Additionally, I've got these handy resources to help you ensure data inside your company stays accurate.

 

 

Thanks for dropping by today, Jerry. Return to this post if you have other questions about handling customer overpayment. I'll get back to respond to them. I'll be here, ready to help you. Take care!

F
findjerryAuthor
November 22, 2024

Thank you @AdonL,

This was very helpful. One final question. The second check, which I recorded as a payment, is "unapplied" under the Status column. Is there a way to fix this? Or do I just leave it as it is?

MariaSoledadG
MariaSoledadG
November 22, 2024

An Unapplied cash payment happens when a payment received from a customer is not allocated to a specific invoice or account balance. I'm here to help you how you can resolve this, Jerry.

 

You can run the Open Invoices report to locate the invoice for the unapplied payment. To do so, follow the steps below:

 

  1. Go to the Reports tab.
  2. In the Find report by name field, enter Open Invoices
  3. Set the report period, then select Run report.
  4. In the Transaction Type column, locate a transaction listed as a Payment.

 

If that Payment transaction matches an open invoice, proceed with the steps below: If you don’t see a matching open invoice, go directly to Step

 

  1.  Select the Payment date to open.
  2. Under Outstanding Transactions, check the open invoice.
  3. Select Save and close.

 

If the payment doesn’t match an open invoice, you’ll need to create the transaction. Follow these steps: 
 

  1. Select + New.
  2. Under Customers, select Invoice.
  3. Fill out the form with the same customer, amount, and date as the payment.
  4. Select Save and close.
  5. Go back to the Open Invoices report.
  6. Find the unapplied payment, then select the date to open.
  7. Under Outstanding Transactions, check the open invoice.
  8. Select Save and close.
  9. Check your Open invoices report to see if there are any more transactions listed as a Payment. If there are, repeat step 2 for each one.

 

Once done run your Profit and Loss report. You should no longer see the Unapplied cash payment income. 

 

Additionally, QuickBooks provides several reports that can help you access the data you need. You'll only have to apply the appropriate filters to get the relevant information for your business: Customize Reports in QuickBooks Online.

 

Let me know if you have any other questions about your customer overpayments. We'll always be right here to help.

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