I issued a refund to a customer who had overpaid an invoice. However, the balance of the overpayment was left open on the customer's account. I cannot figure out how to take this amount off of the account without affecting sales. Can someone give me guidance?
Good day, Lisa-S.
Thanks for posting your concern here in the Community. Let me share a few details about issuing a customer's refund in QuickBooks Desktop.
May I know how did you process the refund? When recording a refund check to a customer, a credit memo should be created first, so you can track the sale and refund correctly.
When the customer has an overpayment, you have the option to leave the credit to be used later or refund the amount at that time.
If you chose to leave the credit and need to issue a refund, open the payment transaction and select the Refund the amount to the customer radio button, so QuickBooks will create a check.
I've attached some screenshots below, so you'll know what I'm referring to.
For further guidance, you can also check out this article: Record a credit memo or refund in QuickBooks Desktop.
That should do it. Feel free to leave a comment below if you have further questions. I'll get them answered for you.
The check was done in January and I do not remember how it was done. I might not have switched to "refund the amount to the customer" when I issued the refund check. What I need to know what to do without affecting sales, is getting the amount left over off of the customer's account. Can you help?
Welcome back to our forums, @Lisa-S,
Allow me to join the conversation and add a bit more about correcting customer overpayments in QuickBooks.
You're almost there, you just have to take more steps. Since you issued a refund check to the client, you'll need to link the transaction to the Accounts Receivables account. Let me walk you through the steps.
This is how it should look like:
Once done, find the invoice then link the refund to offset the overpayment. Follow the steps below:
That should rectify the issue, @Lisa-S. Here's a great article I've added for your reference: Record a credit memo or refund in QuickBooks Desktop
I want to ensure that you're able to enter your refund without any issues, so please feel free to let me know how it goes. I'll be keeping an eye out for your response. Have a good day!
When recording a refund check to a customer, a credit memo should be created first, so you can track the sale and refund correctly.
Bad advice. If you create a credit memo the customer will have double the credit.