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johnc61
Level 1

I have received funds back into my account due to an over payment, how do I process this with QuickBooks

 
Solved
Best answer December 04, 2020

Accepted Solutions
DivinaMercy_N
QuickBooks Team

I have received funds back into my account due to an over payment, how do I process this with QuickBooks

QuickBooks Online makes it easy to record refunds received from your supplier, @johnc61.

 

To start, you'll need to create a bank deposit to record the refund:

 

  1. Go to the + New and choose Bank Deposit
  2. From the Bank Deposit window, go to the Add New Deposit section.
  3. In the Receive From field, choose the supplier you overpaid.
  4. Under the Account column, pick Creditors as the affected account.
  5. Enter the refund amount. 
  6. Tap Save and closebankdeposit2.JPG

 

Once done, link the deposit to the supplier credit:

 

  1. Select + New option.
  2. Choose either Expense or Cheque.
  3. In the Payee drop-down, click the supplier name.
  4. Leave the Ref/Cheque no., Payment date, Amount, and Memo fields blank.
  5. In the Add to Expense or Add to Cheque section, hit Add for the outstanding supplier credit and deposit.
  6. Tap Save and closelink.JPG

 

Here's the article that will provide more info about the process: How do I handle supplier credits and refunds?   

 

Also, I've added this helpful article to guide you in managing your expenses in QBO. For more info, please head to Manage suppliers at this link. 

 

You can always get back to me here in the Community if you have any other questions about recording supplier refund in QBO. I'll always be around to help.
 

View solution in original post

3 REPLIES 3
ShiellaGraceA
QuickBooks Team

I have received funds back into my account due to an over payment, how do I process this with QuickBooks

Hi @johnc61,

 

I'll share the steps on how to handle overpayment. You have options to apply a credit to your customer, refund your customer, or record it as a tip. Below are the easy steps.

 

To apply the credit to an invoice you already created:

  1. Go to + New.
  2. Choose Receive payment or Receive invoice payment.
  3. Select the customer, then the credit and the invoice.
  4. Click Save and New or Save and Close.

Next, apply the credit to a new invoice:

  1. Go to + New.
  2. Choose Invoice or Send Invoice.
  3. Create the invoice.
  4. Go back to + New. Then pick Receive payment or Receive invoice payment.
  5. Select the credit and then Save and New or Save and Close.

To refund the customer for the overpayment:

 

First, record the refund for your customer.

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

Next, link the refund to the customer's credit or overpayment. Here's how:

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

Lastly, you can record the overpayment as a tip

 

In case you need help with other customer tasks, click this link to go to our general topic with articles.

 

Let me know if you still have questions or concerns. I'll be around for you. Take care and have a nice day ahead.

johnc61
Level 1

I have received funds back into my account due to an over payment, how do I process this with QuickBooks

Hi, thanks for your response.
It’s not a customer, it’s a supplier who I have overpaid, they have returned  the over payment. How do I record that in QuickBooks?

DivinaMercy_N
QuickBooks Team

I have received funds back into my account due to an over payment, how do I process this with QuickBooks

QuickBooks Online makes it easy to record refunds received from your supplier, @johnc61.

 

To start, you'll need to create a bank deposit to record the refund:

 

  1. Go to the + New and choose Bank Deposit
  2. From the Bank Deposit window, go to the Add New Deposit section.
  3. In the Receive From field, choose the supplier you overpaid.
  4. Under the Account column, pick Creditors as the affected account.
  5. Enter the refund amount. 
  6. Tap Save and closebankdeposit2.JPG

 

Once done, link the deposit to the supplier credit:

 

  1. Select + New option.
  2. Choose either Expense or Cheque.
  3. In the Payee drop-down, click the supplier name.
  4. Leave the Ref/Cheque no., Payment date, Amount, and Memo fields blank.
  5. In the Add to Expense or Add to Cheque section, hit Add for the outstanding supplier credit and deposit.
  6. Tap Save and closelink.JPG

 

Here's the article that will provide more info about the process: How do I handle supplier credits and refunds?   

 

Also, I've added this helpful article to guide you in managing your expenses in QBO. For more info, please head to Manage suppliers at this link. 

 

You can always get back to me here in the Community if you have any other questions about recording supplier refund in QBO. I'll always be around to help.
 

View solution in original post