Hi there, @Brita2. Thank you for visiting our community and trusting us with your concern about overpayment from your customer. I'm here to guide you on how to refund your customer by creating a credit memo.
When QuickBooks Desktop prompts you to either retain the credit or issue a refund due to the overpayment creating a negative accounts receivable (A/R), and you decide to keep the credit for future transactions, follow these steps:
- From the Customers menu, select Receive Payments.
- Under the Received from drop-down, choose your customer.
- Then, select the Discounts and Credits icon.
- On the Credits tab, check the credit you want to apply and then Done.
- You may see a prompt to confirm the transfer. If you do, select Yes. The amount will be applied automatically to the invoice.
- Select Save & Close.
If you decide to issue a refund to the customer, please proceed with the following steps:
- Select Customers from the top menu bar.
- Choose Receive Payments.
- From the Received from the drop-down menu, enter the appropriate customer.
- Click the Discounts and Credits icon.
- In the Available Credits section, select the check you created, then hit Done.
- If you'll be prompted to confirm the transfer, select Yes.
- When you're done, click Save & Close.
To correctly execute this process, please refer to this article: Give your customer a credit or refund.
You may also want to visit our customer transaction workflow to track your sales and receivables in QuickBooks Desktop.
If you need further help, feel free to visit the community again. I'll be here to assist you.
