Connect with and learn from others in the QuickBooks Community.
Join nowRunning QB 2015 Mac.
I've tried entering a refund for overpayment to customer with the procedure outlined in the many forum posts here, and I always end up with a balance still due to the customer (in Customer window, open invoices, etc.).
Here's an example, and what I am doing:
There is a customer overpayment of $140.
I "Create Credit Memo" and input $140 (not -$140).
I click the credit memo, and click "refund" at the top. In the check window that pops up, I input the correct account, and it shows "Accounts Receivable" will be expensed for $140 (not -$140).
I click "Receive payments" and type the customer name, the refund check is listed. I then click "Apply existing credits" and make sure $140 is the amount shown in the "payments" field.
The balance due to the customer doesn't change. If I click on that customer in customers window, the Credit Memo and Check that derived from the memo both show -$140.
What am I doing wrong?
Solved! Go to Solution.
Hello,
I believe you are creating a credit memo here when one is not needed.
If I am correct, there is a credit of $140.00 already showing on that customers account because of the overpayment.
A credit memo is used if the customer is returning something. Which is not the case here. You are simply refunding an over payment.
What you want to do is write a check to the customer for $140.00. Under the expense tab use the "Accounts Receivable" account. Under "Customer:Job" enter in the customer again.
Next go to "Receive Payments" and apply the credit $140.00 (Customer's over payment) to the invoice (the refund check).
Hello,
I believe you are creating a credit memo here when one is not needed.
If I am correct, there is a credit of $140.00 already showing on that customers account because of the overpayment.
A credit memo is used if the customer is returning something. Which is not the case here. You are simply refunding an over payment.
What you want to do is write a check to the customer for $140.00. Under the expense tab use the "Accounts Receivable" account. Under "Customer:Job" enter in the customer again.
Next go to "Receive Payments" and apply the credit $140.00 (Customer's over payment) to the invoice (the refund check).
I don't understand here is why the account receivable is choosing, instead of cash or other name? Unless the customer hasn't paid you for the amount? Please explain!
why the account is chosen by account receivable?
Hello there, @Anonymous,
Allow me to step in and share some information with you why we're using the Accounts Receivable.
When we create an invoice, QuickBooks debits Accounts Receivable and credits your income account. Since they wrote a check to refund the overpayment, as stated on this thread, this impacts your bank thus we need to fix the income and clear AR.
That will clarify your concern for today @Anonymous.
Let me know if there's anything else I can help you with QuickBooks. Just leave a comment or start a new conversation by posting here in the Intuit Community. We're always around to help.
Thanks, a very clear answer.
I'm delighted to hear this from you, @Anonymous.
Just let me know if there's anything else you need by replying to this thread. I'd be happy to help.
Have a great day ahead!
I have a similar situation. Mine, however, is an overpayment from a closed month (in 2019). I want to use the overpayment locked in the invoice that was overpaid and sale job closed out. I want to use that amount to apply to a different invoice in current year. Can I somehow do this with a jounal entry? Please help, if you can...appreciate it.
Good evening, @Patsy20.
I'm here to help you move the Overpayment from the Invoice in the Closed Month to another Invoice.
All you have to do is go to the Invoice that doesn't have the Overpayment, press on Recieve Payment, scroll down until you see the Credit, then apply it to the Invoice.
Rest assured, this won't mess up your Closed Month or any of your transactions. If you don't see the Credit available, make sure it's to the same Customer and it isn't already applied to another Invoice.
Let me know if you have any additional questions or concerns. I'll be right here if you need further assistance.
You are a GEM, Ashley. It worked. Thank you. I gave you "Thumbs up"
I have an overpayment by a customer and there is no invoices or service. How do I refund on a credit card?
I'll help with your customer's payment, MP65.
You can log in to your QuickBooks Payments account and process the credit card refund from there. Here's how:
You can also follow these other way of sending a refund to your customer's credit card:
You can also run the Invoices and Received Payments report in QuickBooks Online. This report will give you a list of all the invoices and payments that are applied to them. You can open it by going to the Reports menu and typing in Invoices and Received Payments in the Search bar.
Please don't hesitate to reach out to us again if you have other questions. We're always here to help.