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Level 1

How to refund a whole amount, including overpayment on a customer invoice?

Hi,

How do I fix this in QBO (AU) - In layman's terminology please?

 

A customer payed (via bank feeds) one lump payment which was for multiple customer invoices (eg; $1010 payed for 4 invoices #1-#4, actually only totaling $1000 due).

Within that payment, invoice#1 was over payed (eg . due amount of invoice#1 was $100, though $110 was received and allocated as over payment to Invoice#1).

The customer required a full bank transfer refunded of the $110 payed for invoice#1.

The customer then later repaid Invoice#1,  within another lump payment for multiple invoices #1 & #5-#9, all for the correct amounts.

 

Regards

J.

 

14 Comments
QuickBooks Team

Re: How to refund a whole amount, including overpayment on a customer invoice?

Hi Northlandspc/J, 

 

Thank you for reaching out on this. 

 

I can see you have asked similar question on community before so I would just answer both on this one here. Thank you for the additional information. 

 

I would suggest removing the payment of $110 from Invoice#1 to make the invoice open and available for your customer to pay you again.

 

For the $110 customer had paid you before, you can create a bank deposit in QuickBooks so you can match it in banking.

 

When you refund the customer of $110, you can create an expense to record and match the refund. 

 

Once your customer pays you again for invoice #1 with $100, you can record the payment on the orginal invoice. 

 

Hope this helps, and here is an article from our community for your reference:

Record a customer refund

https://quickbooks.intuit.com/learn-support/en-us/manage-customers-and-income/record-a-customer-refu...

Level 1

Re: How to refund a whole amount, including overpayment on a customer invoice?

Hi,

Thanks, but that doesn't help ?

I am not a bookkeeper, Nor more than a basic novice of QB, it isn't explained in layman's terms for a user who may not know accounting. Either this is not just a simple task, or just I don't seem to be able to follow the concept or procedure fully? I had previously tried following the link which you also suggested, doesn't appear to work logically when I follow the instruction steps ?

It seems to only allows me to apply the actual invoice amount, not the whole over payment which then leaves the bank out of balance and the invoice still paid ?

 

Is there more of a basic beginners directions somewhere to do, what should be as simply a matter of crediting the amount payed, against the invoice it was assigned, then repaying the full amount to the customer ? 

Regardd

J.

EDITED: Step 2, doesn't allow the payment for the multiple other (and Invoice#1) to be allocated as payment, as Invoice#1 doesn't show as unpaid, so doesn't display as to be paid?

EDITED2:  The Invoice#1 was payed in 20/02/2019, we payed customer back 03/05/2019, then customer payed correctly on 05/07/2019. So all reconcile of banks is now out and a mess following the directions of the link?

 

Anonymous
Not applicable

Re: How to refund a whole amount, including overpayment on a customer invoice?

Hello, northlandspc.

 

If you’re not comfortable following the steps provided by my colleague, you might want to void the invoice. Create a refund cheque and recreate the invoice for the next payment.


Void an invoice:

 

  1. Open the invoice involve.
  2. Click More at the bottom and select Void. This will make the payment as unapplied.

Create a refund cheque:

 

  1. Click the plus icon at the top.
  2. Select Cheque under Supplier.
  3. Enter the customer’s name for payee.
  4. Select the bank account involve.
  5. Enter the amount to be refunded.
  6. Select Accounts Receivable for Category.
  7. Click Save and close.

To link the refund cheque to the unapplied payment:

 

  1. Click the plus icon at the top.
  2. Select Receive Payment under Customer.
  3. Select the customer involved under the Customer field.
  4. Checked the refund cheque under Outstanding Transactions.
  5. Checked the unapplied Payment under Credits.
  6. Click Save and close.

Once done recreate the invoice for the customer's next payment. Please get back to us if you require further assistance. 

Level 1

Re: How to refund a whole amount, including overpayment on a customer invoice?

Hello MikiD, Thank you for your reply, though that also doesn't work. I think I know why, but am unable to resolve. It seems, due to the customer relating to the credit to be applied, is actually a "sub-Customer" it comes back with the warning of "no invoices to the customer". This seems to be requiring another method to solve the applied credit back to the actual payee when sub-customers are invoiced maybe? Bellow is the message we get.( i have changed the names accordingly for privacy of course.) "c/- Master Customer: address of Sub-Customer's payment doesn’t have an open invoice to go with it We’ll save this payment as credit to your customer since you don’t have any open invoices. If you want to record this payment without an invoice, use a sales receipt" Any further advice is appreciated. Thank you.
QuickBooks Team

Re: How to refund a whole amount, including overpayment on a customer invoice?

Hi again Northlandspc, 

 

Thank you for getting back to us on this, and providing us with additional information. 

 

As you mentioned, the customer you are trying to refund is a sub-customer. Can you please check if the box for "Bill with parent" is ticked under the customer's setting? The error "no invoices to the customer" can be caused by the "Parent Customer" was invoiced at the first place. 

 

Please have a look and let us know how you go. Thank you. 

 

 

Level 1

Re: How to refund a whole amount, including overpayment on a customer invoice?

HI, The customer card is ticked for "is sub-customer" with the Master Customer name in the drop down box. With the "Bill this customer" selected also in the next box. It is an awkward issue, as I needed to set the customer cards accordingly to allow for ease of invoicing procedures in the users. Reason for doing so, in case it is needed as understanding (or if a easier method is known.) eg; The Master Customer is a Property manager Agent, The sub-customer is the Owner of the actual Property. (though I use the property address as the sub-customer name for reporting and invoicing etc.) Should I then be raising credit to the Master Customer, not the sub-customer, if that is what I think you are implying? I appreciate all the help with this, as it's a learning need obviously for future times it may be required. Thank you again.
QuickBooks Team

Re: How to refund a whole amount, including overpayment on a customer invoice?

Hi Nothlandspc, 

 

Thank you for your reply. 

 

If the "Bill this customer" option has been selected, then the sub-customer should have been invoiced. I tried to replicate the method my colleague suggested by voiding the invoice and it has worked for me. I would like to suggest checking the when creating the adjustment note, if the sub-customer was created. 

 

Should you require additional assistance, you can also Contact Us and our support team member would be able to help you on the steps. Thank you. 

Level 1

Re: How to refund a whole amount, including overpayment on a customer invoice?

H again, When I go in to the history of the sub-customer, yes the one being invoiced. here are the related transactions now. Date Type No. Due date Balance Total Status 14/02/2019 Invoice 1186 28/02/2019 0.00 0.00 void 20/02/2019 Payment 20/02/2019 -104.91 -104.91 unapplied Then, when I go in to the "unapplied" payment, it brings up "Receive Payment" window. Even if I try both the Master and Sub Customers in this area, neither will bring up the Invoice 1186 to allocate it to the invoice? this still remains an issue where it cant see the invoice, to allow me to allocate future payment to it? I'm not a bookkeeper, so I need either a step by step directions, or be pointed to where a flow chart like directions can be for this instructions maybe? As both previous support step by step methods didn't work due to unlisted outcomes which were experienced this end, preventing completion of the whole of the procedure steps. I am unsure why it works when you do it, as it doesn't allow it to show in either of the areas to apply the unapplied areas on my system? is there a link to directions as to how step by step (with screen shots possibly) to show how things like this are to be done? Though when I do follow the step by step instructions, it seems to prevent completion of all steps as an issue different to what is expected when producing the steps happens. I would agree and did have presumed, a simple Void of the invoice that had the payment allocated, would then simply remove the payment to that invoice, reassigning it as an unpaid invoice, which at the same time would allow the payment from the customer returned as a credit to the customer? It seems it doesn't, possibly due to a customer cards setup? Kind regards J.
QuickBooks Team

Re: How to refund a whole amount, including overpayment on a customer invoice?

You're almost there, J.

 

It seems that you successfully voided the invoice. And there's already an unapplied payment. The next thing you'll need to do is to create a Cheque. 

 

  1. Go to the Plus icon and select Cheque.
  2. From the Payee drop-down, select the customer affected.
  3. Select the correct bank.
  4. Enter the amount to refund.
  5. Select Accounts Receivable for Category.
  6. Click Save and close. 

 

 

Then, you'll need to link the Cheque to the unapplied payment.

 

    1. Click again the Plus icon and select Receive Payment.
    2. Select the customer from the Customer drop-down
    3. Select the Cheque you've created under Outstanding Transactions.
    4. Select the Unapplied Payment under Credits.
    5. Click Save and close. 

 

Once done, you'll have to recreate the invoice. That way, you can generate a new invoice, and process the payment with the correct amount.

 

Please let me know if you have other concerns.

Level 1

Re: How to refund a whole amount, including overpayment on a customer invoice?

Hello AlexV,

I appreciate your help and detailed step by step directions.

Though, again, it again doesn't show the Cheque in the step 3 section 2 of the steps?

I have tried it on both the Master and sub Customers, both don't show the cheque ?

 

Is there any resason why it won't show in this section?

 

Kind regards

J.

QuickBooks Team

Re: How to refund a whole amount, including overpayment on a customer invoice?

Hi northlandspc,

 

Thanks for reaching out. 

 

Could you click on the sub-customer under the Customers section, and see if the Cheque Expense is listed under the Transaction List? If it's not listed, try and re-create the Cheque Expense as per section 1 of AlexV's instructions.

 

Another thing I would like you to check is to remove any Filters applied on Outstanding Transactions section in the Receive Payment screen. 

 

Let me know if you're able to find the Cheque Expense or not with the above steps.

 

Bonny

Level 1

Re: How to refund a whole amount, including overpayment on a customer invoice?

HI Bony, I think what section you mean to go to, doesn't show a Cheque of any sort? Attached is a screen shot (minus personal non related info) of the sub-customer concerned. There are a few additions (likely further errors) which have been added from all the trials of following other QB step by step self help advice before this forum. Thank you for yours and all that are helping me with this as well. Kind regards J.
QuickBooks Team

Re: How to refund a whole amount, including overpayment on a customer invoice?

Hi J, 

 

Thank you for getting back to us on this. 

 

Can we confirm if you have created the Cheuqe for the sub-customer, please?

The next thing you'll need to do is to create a Cheque. 

 

Here are the steps again to create the cheque if you haven't done it yet. 

 

  1. Go to the Plus icon and select Cheque.
  2. From the Payee drop-down, select the customer affected.
  3. Select the correct bank.
  4. Enter the amount to refund.
  5. Select Accounts Receivable for Category.
  6. Click Save and close. 

 

 

Please let us know how you go. 

 

Thank you. 

Level 1

Re: How to refund a whole amount, including overpayment on a customer invoice?

Hi Zac, Please excuse my lack of understanding here, why am I to create a cheque, we dont use cheques because we do everything via electronic banking? Or is that just the method not yet changed in QB software to a current term for non cheque use industries? I will give it ago again and see. thank you. Kind regards J.

EDITED: as there are quite a few attempts to make the correction to the actual transaction I based the question on.  It might be now that QB is so confused, like myself, so i think maybe I will start again with another Overpayment (identical) situation which has also occurred more recent.

 

I will let you know if it works on the fresh credit item or not as well.