A customer has paid an invoice twice how do I record the receipt and the refund?

Hello alison-finn,

1. Record the payments against the invoice as one, i.e. double the amount of the invoice. This will create a credit on the system for the customer.

2. You can then go to the + icon and select Expense to record you paying the customer back. Select the customer in the box at the very top. Select the bank account you paid the refund from as the Payment account. Select Debtors as the Category and enter the whole amount (including VAT) - the VAT code must be No VAT.

3. Go to + > Receive payment and select the customer - the expense and credit note will show on the screen, make sure these are both ticked so that the Amount received at the top is showing as 0. This links the expense and credit together to show it is a refund.

4. You are now able to match the amount leaving your bank in your bank feed (if you have your bank connected) to the expense created.

Thanks,

Talia

Thanks Talial

Thanks for responding.

Unfortunately they made the overpayment on a different day from the date they originally settled the invoice so I cannot record the payment as twice the amount, there is two weeks apart from one payment and the other so my bank would be wrong, I cannot receive the second payment against the invoice again as QuickBooks already has it as paid. I tried to do a journal however my outstanding invoices now doesn't match my accounts receivable

Hello alison-finn,

You will therefore need to record this as a sales receipt. You will not be able to link this to the invoice, but you can make a note on the sales receipt itself so you know when looking back what this relates to. You will need to create a credit note manually, make sure this mirrors the original invoice, including any VAT. Follow the steps for the expense etc. as normal.

Thanks,

Talia