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Level 2

How to reflect customer overpayment and refund in QBO?

A Customer paid an invoice twice in error and requested we refund them, and I have made payment through the bank to them.  Can someone please tell me the correct way to record everything related to it as I still have a minus balance of the amount of the original invoice showing on the customer account and can't seem to clear it
Solved
Best answer 02-26-2019

Accepted Solutions
Level 10

Re: How to reflect customer overpayment and refund in QBO?


@TaliaI wrote:

Hello dawne109.

 

Thank you for your question!

 

To record a customer refund:

 

1. Create a credit note through the + icon. Select the customer in the top left hand corner and fill in the date you paid the refund. This is reflecting the original invoice, so use the same product/service and fill in the same amount/VAT code.

 

2. Create an expense. Select the customer in the top left hand box and make sure to select the bank account the refund came out of. Under category, select 'Debtors' and enter the whole amount including VAT. Select No VAT as code.

 

3. Finally, we need to link the credit note and expense together. Select 'Receive Payment' under + icon. Select the customer in the top box, and tick both the expense and credit note.

 

4. You will then be able to match the expense in Banking if you have your bank connected.

 

 


 

No don't create a credit note. 

The customer already has an extra credit from the 2nd payment, which is unapplied , so don't do step 1.  In step 3, substitute credit note with unapplied payment

View solution in original post

3 REPLIES 3
QuickBooks Team

Re: How to reflect customer overpayment and refund in QBO?

Hello dawne109.

 

Thank you for your question!

 

To record a customer refund:

 

1. Create a credit note through the + icon. Select the customer in the top left hand corner and fill in the date you paid the refund. This is reflecting the original invoice, so use the same product/service and fill in the same amount/VAT code.

 

2. Create an expense. Select the customer in the top left hand box and make sure to select the bank account the refund came out of. Under category, select 'Debtors' and enter the whole amount including VAT. Select No VAT as code.

 

3. Finally, we need to link the credit note and expense together. Select 'Receive Payment' under + icon. Select the customer in the top box, and tick both the expense and credit note.

 

4. You will then be able to match the expense in Banking if you have your bank connected.

 

Please let us know if you have any further questions.

 

Thank you,

 

Talia

Level 10

Re: How to reflect customer overpayment and refund in QBO?


@TaliaI wrote:

Hello dawne109.

 

Thank you for your question!

 

To record a customer refund:

 

1. Create a credit note through the + icon. Select the customer in the top left hand corner and fill in the date you paid the refund. This is reflecting the original invoice, so use the same product/service and fill in the same amount/VAT code.

 

2. Create an expense. Select the customer in the top left hand box and make sure to select the bank account the refund came out of. Under category, select 'Debtors' and enter the whole amount including VAT. Select No VAT as code.

 

3. Finally, we need to link the credit note and expense together. Select 'Receive Payment' under + icon. Select the customer in the top box, and tick both the expense and credit note.

 

4. You will then be able to match the expense in Banking if you have your bank connected.

 

 


 

No don't create a credit note. 

The customer already has an extra credit from the 2nd payment, which is unapplied , so don't do step 1.  In step 3, substitute credit note with unapplied payment

View solution in original post

QuickBooks Team

Re: How to reflect customer overpayment and refund in QBO?

I apologise, thank you for the correction!