Handle a customer credit or overpayment in QuickBooks Online

Learn what to do in QuickBooks Online when a customer overpays you.

If a customer overpays, you can apply the credit to an invoice, give a refund, or enter the extra payment as a tip.

There are a few ways to handle credits in QuickBooks. Learn how to create a credit.

Apply the credit or refund the customer

Option 1: Apply the credit

Apply the credit to an existing invoice

1. Select + New or + Create.
2. Select Receive payment.
3. Select the Customer, then the credit and the invoice.
4. Select another pending invoice and enter the overpayment amount in the Amount received.
5. Select Save and new or Save and close.

Tip: Learn how to turn on or turn off Automatically apply credits.

Option 2: Refund the customer for the overpayment

If your customer overpaid you on accident, you can give them a refund.

The customer’s overpayment is now correctly handled. Whether it’s credited or refunded, your books stay correct.