A customer accidentally sent 3 etranfers today rather than 1. I refunded him the overpayment amount also by etransfer. How do I record these entries in QB?

Hi lynda.kemp2, 

Mistakes happen, and running your business with QuickBooks Online helps you account for all kinds of unlikely situations. If your customer has sent you money by mistake and you need to record a refund, QBO makes this process simple. I'll explain how you can record the refund in a few easy steps.

If you need to return your customer's money, don't worry. Here's how to record a refund based on various scenarios: Record a customer refund in QuickBooks Online. This ensures your books are up-to-date.

I'd recommend referring to the sub-section in the article titled "Refund a customer's overpayment or credit", as it sounds like this method would best suit your needs. 

Here's an overview of that section: 

Step 1: Record the refund for your customer

1. Select + New.
2. Select Expense, Add expense or Cheque.
3. Select the customer you want to refund from the Payee ▼ drop-down.
4. From the Payment account ▼ drop-down, select the bank account where you deposited the overpayment too.
5. On the first line of the Category column, select an Accounts Receivable.
6. Enter how much you want to refund in the Amount field.
7. Fill out the other fields as you see fit, then select Save and close.

Step 2: Link the refund to the customer's credit or overpayment

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

That's all there is to it. If you have any additional questions, please don't hesitate to reach out to an expert on our tech support team. 

Cheers.

Does your suggestion of how to "enter the refund for overpayment by e-tsf" actually process a refund through our Bank Account to the Customer's Bank Account or just through QBO?
Also, does it create a physical entry, like a receipt that we can send to the customer?
Thank you,
Janice 

Hi janicevanartdept.

Being able to track your refunds and credits is a great way to provide yourself and your clients with a record of them. I'd be happy to go over refund receipts and credit memos with you.

QuickBooks Online makes it easy to keep track of your clients credits and refunds by making a receipt for each. When you issue a refund through QuickBooks Online it doesn't send the money directly to your client's bank account. It would just track that a refund was made and you would need to either e-transfer the funds to your client or provide them with a cheque. As for refund receipts, once a refund is processed in QuickBooks using the methods showing above, a refund receipt will be created that you can send to your clients for their own records. The same goes for credit memos if your customer would rather use the overpayment against future purchases.

If you have any questions let us know and we'd be happy to help.