Refund for overpayment via batch file

Hi SB115,

Processing batch file in QuickBooks Online is applicable for suppliers only. If you need to process or record customer credits due to an overpayment made, you can record an expense transaction to record the refund for your customer. Here's  how:

1. Click on the + New.
2. Click on Expense or Cheque.
3. Select the customer name you wanted to refund under Payee field.
4. Choose the Payment account where you deposited the overpayment.
5. In the Category column select Accounts Receivable account.
6. Enter amount and other fields, then click on Save and close.

Then, to link the refund and the overpayment click on Receive payment section. Here's how:

1. Click on the + New.
2. Click on Receive payment.
3. Select the customer name and then link the overpayment and the expense.
4. Click on Save and close.

You can check this link to learn more about how to Handle customer refunds in QuickBooks Online. 

Post again in the Community if you have further concerns. 

Thank you so much for getting back, the customer was a one off customer and would like to get the overpayment refunded straight away, Should I create a customer as a supplier and then make an bill and pay.

Hi Sachit,

There is no need to add the customer  as a supplier in QBO. When you create the expense transaction you can select the customer name in the Payee field. That way, the refund/expense will be associated under that customer.

1. Select + New and select Expense.
2. In the Payee field, select or enter the desired customer.

Reply to this post if you need more help recording your transactions. 

Sorry Just another question so now I have done the refund and I need to transfer the money back to the customer, but the company policy only allows to create batch payment to transfer the money to anyone. How should I go about it as batch can't be created for customers.

Hi Sachit,

The feature you are looking to add customers to the batch payment file is unavailable in the current offerings of QuickBooks Online. I recommend to directly do a bank transfer to the customers account from your company's online banking account.

I recommend to send a product feedback to let our Product Developers know of the option you needed in QBO. Here's how:

1. Click on the Settings icon in QBO.
2. Click on Feedback.
3. Enter a few details about your product suggestions. 
4. Click Next to submit your feedback.

Your feedback foes directly to our Product Developers team to help improve your experience in QBO.

Feel free to reply to this post if you have other concerns about QuickBooks Online.