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Active Member

Customer overpaid an invoice, how do I record this?

 
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Best answer 02-07-2019

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Moderator

Hi mike, Let me help you handle over payment from your cu...

Hi mike,

Let me help you handle over payment from your customer in QuickBooks Online.

We can either leave the over payment as is and apply it the customer's future invoices, or create a refund for the over payment.

Here's how to record the over payment for your customer's invoice:

  1. In the upper-right corner, click the Create menu (+).
  2. Select Receive Payment.
  3. In the Receive Payment window, choose a customer.
  4. Under the Outstanding Transactions section, put a check mark on the invoice you want to pay.
  5. In the Amount received field, enter the exact amount you received from the customer (including the over payment).

You can also check out this article on how we can create a customer refund: https://community.intuit.com/articles/1145640.

If you have further questions, please let me know. I'm here to help.

16 REPLIES 16
Moderator

Hi mike, Let me help you handle over payment from your cu...

Hi mike,

Let me help you handle over payment from your customer in QuickBooks Online.

We can either leave the over payment as is and apply it the customer's future invoices, or create a refund for the over payment.

Here's how to record the over payment for your customer's invoice:

  1. In the upper-right corner, click the Create menu (+).
  2. Select Receive Payment.
  3. In the Receive Payment window, choose a customer.
  4. Under the Outstanding Transactions section, put a check mark on the invoice you want to pay.
  5. In the Amount received field, enter the exact amount you received from the customer (including the over payment).

You can also check out this article on how we can create a customer refund: https://community.intuit.com/articles/1145640.

If you have further questions, please let me know. I'm here to help.

Not applicable

We received an overpayment from a Customer.  We want to a...

We received an overpayment from a Customer.  We want to apply part of the payment to the invoice and classify the remaining part of the payment as a donation.  Is there a way to do that?
Experienced Member

We need to record an overpayment as a tip or gratuity. Ho...

We need to record an overpayment as a tip or gratuity. How is this done?
DJC
Community Explorer **

Re: We need to record an overpayment as a tip or gratuity. Ho...

WIldWaynesLLC  you can always book a general entry that credits income and an offsetting debit to the Accounts Receivable for the tip amount.  You should then be able to go back to the payment where you received excess and apply the tip amount to the customer.    Hope that helps  

Frequent Contributor *

Re: Hi mike, Let me help you handle over payment from your cu...


@JamesDuanT wrote

You can also check out this article on how we can create a customer refund: https://community.intuit.com/articles/1145640.

If you have further questions, please let me know. I'm here to help.


 

The link in your answer does not exist.  I received the payment and overage.  How do I issue a payment in the form of a check to the customer.  

It would help if you gave the complete answer to the question including a way to issue a payment.  

 

 

QuickBooks Team

Re: Hi mike, Let me help you handle over payment from your cu...

Thanks for joining this thread, @BoxesNearMe1

 

I'll help ensure you're able to issue a check when receiving your customer's overpayment. 

 

Using check to record the refund reduces your bank's balance and offsets your customer's overpayment. Here's how: 

 

  1. Go to the Plus (+) icon at the upper right. 
  2. Choose Cheque under Suppliers
  3. In the Payee column, select the customer.
  4. Choose Accounts Receivable in the Category column,
  5. In the Amount column, enter the overpayment amount. 
  6. Click Save and close.

 

Once done, you can pair the check with the credit or overpayment. Here are the steps: 

 

  1. Go to the Plus (+) icon at the upper right. 
  2. Choose Receive Payment under Customers
  3. Enter the necessary information. 
  4. Under Outstanding Transactions, choose the Cheque that you created.
  5. Select the Unapplied Payment under Credits
  6. Make sure Amount Received is zero.
  7. Click Save and close.

 

For the link provided by my peer above that isn't working, here's the helpful article you can refer to: Refund A Customer for Open Credit, Prepayment, or Overpayment

 

The steps above will help you issue a payment in the form of a customer's check, @BoxesNearMe1.

 

I'll be around to help if you need further assistance. Have a good day. 

Experienced Member

Re: Customer overpaid an invoice, how do I record this?

I had a similar issue in Quickbooks Online

 

The Invoice amount was 1000, customer paid a check of 1200 by mistake. So the customer account shows that 200 as unaccounted. They have asked for a refund, and we paid by cash amt 200.

 

To record this, what i have chosen is 

 

1 Created an expense by clicking "Expense" tab in under suppliers.

2  Selected the customer as "Payee"

3  In the category detail - chosen "Accounts Receivable (A/R)" and entered the amount by giving  

     the description "Excess payment returned"

4  Selected the "customer" also the same customer

 

It worked, in the customer details, it shows as an expense account and the balances are tallied.

Experienced Member

Re: Hi mike, Let me help you handle over payment from your cu...

i have tried to do this and when i enter the amount paid it just defaults and auto corrects it to the full invoice amount and doesnt allow me to include the over payment. 

 

i have selected the automatically apply credit function in my settings 

QuickBooks Team

Re: Hi mike, Let me help you handle over payment from your cu...

Hi abdecor_bex

 

We would be grateful if you can de-select all the automation from within the advanced settings.

You should then be able to receive payment on the invoice and overwrite the amount received box to the actual amount the customer paid, this will then create a credit on the customers account.

Are you intending to refund the customer the amount or leave it as a credit to use against a subsequent invoice?

Experienced Member

Re: Hi mike, Let me help you handle over payment from your cu...

Hi , 

 

I was just going to leave the payment on the account as the client is hopeless and always under paying/ overpaying almost every invoice !! 

 

I have managed to do it, it allowed me to enter the full amount  paid including the over payment when matching to invoice in the banking tab ( I had been trying previously to do it just from the customer view/invoice list)

 

I can now see the credit showing and the client total owed has reduced by the amount overpaid. 

 

Thnak you 

Active Member

Re: Hi mike, Let me help you handle over payment from your cu...

I am having the same issue as Mike, but even when I turn off all automation it will still repopulate the initial invoice amount.  Please help!

 

Cheers,

 

Bronwen

 

QuickBooks Team

Re: Hi mike, Let me help you handle over payment from your cu...

Hi Launchfire,

 

Sorry to see you're having the same issue. Could you try clearing the cache of the browser you are on to remove stored data, and then create the invoice.

You can see how to clear the cache on the browser you are using here.

 

Let me know if this works for you!

Active Member

Re: Hi mike, Let me help you handle over payment from your cu...

Hello,

QBO does not let me record the exact amount received. It keeps reverting back to the invoice amount vs the amount I manually entered. The system is set up to automatically create credits. Any ideas on how it will allow me to record the actual amount?

Moderator

Re: Hi mike, Let me help you handle over payment from your cu...

Hi there, @HoD1.

 

You can only enter the exact or partial amount in the Payment field. In order to record the excess, the total amount paid should be entered in the Amount received field.

 

Here's how: 

  1. At the top right, select the Plus (+) icon
  2. Select Receive Payment
  3. Enter the necessary information. 
  4. Under Outstanding Transactions, choose the invoice.
  5. In the Amount Received field, enter the exact amount of the payment. 
  6. Click Save and close.

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In case you want to create a recurring invoice which gives your customers options on when to pay and how much, you can check the following article to create and manage these transactions: How to create a recurring invoice and manage recurring transactions.

 

We’re always here if you have other questions about QuickBooks. 

Experienced Member

Re: We need to record an overpayment as a tip or gratuity. Ho...

I have the exact same problem. It would be very helpful if QBO allowed you to post an enter for the overpayment to an income account at the same time and on the same input screen the payment was applied to the invoice.

 

Steve

Experienced Member

Re: We need to record an overpayment as a tip or gratuity. Ho...

We found this simple work-a-round to handle gratuities . . .

1. We setup a new product called "Tips"

2. When tips are received, we edit the appropriate invoice to include the amount of the tip

3. Finally, the payment amount is applied to the appropriate invoice.

This works for us, hope you find it helpful as well!