Question

Refund overpayment to third party that paid for customer account

Forum|Forum|5 years ago
August 17, 2021
4 replies
35 views

We received a payment from an insurance company for a customer account. The insurance company overpaid for the customer account, and I need to refund the overpayment to the insurance company. I've applied the payment to the customer account and tried to refund the overpayment, but it only allows me to create a refund for the customer, not the insurance company. I've tried a journal entry, but that still leaves the customer's account reflecting in our A/R aging report (thought with a zero balance.) What would be the best way to apply the payment to the customer's A/R and create a refund to the insurance company so everything reflects correctly in our accounts and reports?

QuickBooks Desktop

BigRedConsulting

Level 15

After creating the refund check, edit the check (in your checking account) and change the payee name to the insurance company. Leave the customer:job on the detail row of the check that uses your AR account.

J

JHawkins218Author

I've tried that. While it does remove the the balance from the customer account, and the check is correct as to payee and amount, it still leaves the customer showing in my A/R Aging Summary. I also tried applying payment by creating a journal entry, but it's the same issue.

R

Rea_M

Level 10

Let me share further details as to why the payment for the customer account still shows in your A/R Aging Summary report in QuickBooks Desktop (QBDT), @JHawkins218.

You're already on the right track in refunding an overpayment to a third party that paid for a customer account in QBDT. The steps provided by @BigRedConsulting are already correct.

Since A/R Aging Summary will let you find out how much your customers owe and when it is due, you'll have to make sure you've set the report date (i.e., includes the sales, payment, and refund transactions date) accordingly. This way, you'll see a zero amount under the customer's account.

Pull up the A/R Aging Summary report again, then update the date period in the Dates field. Please see the screenshot below for your reference.

To understand further how QuickBooks generates reports, I'd recommend checking out this article: Understand reports.

Also, you can customize reports in QBDT to focus on the details that matter to you the most. Then, memorize them if you want the same settings of the customized report to be available for future use. You can refer to this article for the complete details: Create, access, and modify memorized reports.

Keep me posted on how it goes. If you have other reporting concerns, please don't hesitate to leave a comment below. I'll gladly help. Take care, and wishing you continued success.

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