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How do you properly record a customer refund for an over payment that was recorded in the prior year?
Example: Over payment is in December 2019 and is sitting in Unapplied Cash Payment Income. Refund for over payment is processed in 2020. Is there a way to clear "Unapplied Cash Payment Income" in both years?
Thank you
Solved! Go to Solution.
Let me help you sort out the overpayment from your customer, @ke108.
You can either leave the overpayment as is and apply it the customer's future invoices, or create a refund for the overpayment.
Here's how to create a refund:
The other way is to create a cheque to record the refund and reduce the balance of the account where the overpayment was deposited. Also, it offsets your customer's overpayment. Here's how:
Once completed, you can pair the check with the credit or overpayment. Here's how:
You can use this article for more detailed insights: Record a customer refund in QuickBooks Online.
Swing by here if you have other questions. I'm always here to help you with managing your unapplied cash payments.
Let me help you sort out the overpayment from your customer, @ke108.
You can either leave the overpayment as is and apply it the customer's future invoices, or create a refund for the overpayment.
Here's how to create a refund:
The other way is to create a cheque to record the refund and reduce the balance of the account where the overpayment was deposited. Also, it offsets your customer's overpayment. Here's how:
Once completed, you can pair the check with the credit or overpayment. Here's how:
You can use this article for more detailed insights: Record a customer refund in QuickBooks Online.
Swing by here if you have other questions. I'm always here to help you with managing your unapplied cash payments.
Thank you! I was wondering when I do the refund check in 2020 and apply it to the over payment that was in 2019 how that would affect the P & L? When I link the two it still shows them in each year in "unapplied cash payment income". I didn't know if something different should be done when 2 years were involved?
Thank you so much!
Hello there, ke108.
The Unapplied Cash Payment Income is used to report cash basis income from customer payments that are received but not applied to any sales form. Here are a possible reasons why an amount is showing in this account:
We can follow the steps shown in this article on how to clear Unapplied Cash Payment Income and how we report this account.
If there's anything else that you need, you can always leave a reply. You take care always!
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