We had a customer who was supposed to make a payment of $2000 deposit for her $5200 job. She paid $5200 by accident and we were charged $177 fee. Best way to refund?

I got you covered, @cwhitefordfloors.

The best way to record this refund is to create an expense. Let me guide you through the steps in your QuickBooks Online (QBO) account:

1. Go to the + New menu.
2. Click Expense.
3. Select the customer from the Payee drop-down menu that needs to be refunded
4. Choose bank account you deposited the overpayment from the Payment account field.
5. From the CATEGORY  column, select Accounts Receivable (A/R).
6. Enter the refunded amount $3200
7. Then click Save and close. 

Then, link the refund to your customer overpayment:

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

You can also see this article for more details about the process of recording a refund to your customer in QBO.

I’ve also added this link that can guide you through the steps when you need to link a deposit to an invoice.

Tag me in if you have other concerns or questions about refunds in your QBO account. I’m only a post away from you.