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Ssimma21
February 16, 2024
Question

Refunded Client Now Shows a Negative Balance

  • February 16, 2024
  • 1 reply
  • 0 views

We had a client request a refund for an invoice they'd paid via credit card, as they recently sold their business and wanted the new owner to pay the invoice instead. The invoice was for $1,486.25. We refunded $1,486.25 to the credit card they used and deleted the invoice (so we could create a new account and invoice for the new business owner). But now, the original account in Quickbooks says the open balance is -$1,486.25. Why would that be? And how do we fix it? The balance should be zero--they've been refunded and the invoice has been removed...

1 reply

R
rvrfrf
February 16, 2024

Thanks for joining the Community, Ssimma21.

 

Negative balances occur when a customer pays more than their invoiced amount. In QuickBooks, some options to clear up a negative balance are credit memos, entering a refund receipt, or writing a check to refund any overpayments.

 

However, the solution is based on your particular situation. To properly identify why there's currently an open balance of the amount you already refunded your customer, I'd recommend working with an accounting professional. If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

 

Here's how it works:
 

  1. Go to our Find a ProAdvisor page.
  2. Use the City or ZIP search field to specify a location.
  3. Select Find a ProAdvisor.
  4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.

 

I've also included a detailed resource about working with overpayments which may come in handy moving forward: Handle a customer credit or overpayment

 

Please don't hesitate to send a reply if there's any additional questions. Have an awesome Friday!

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