Your process is exactly how this is detailed in the users guide. The issue was likely the item you used on the credit memo.

Worked! Thanks!

To add a note: Creating a credit memo, then a check: You are paying the creidt memo with the check. But in this case the credit memo is already created from the over payment, All you need is the check. This is why you have a -140.00. You simply were creating an extra credit when it was not needed.

I am having trouble with this. I have a $6 refund I need to give back for an over payment. The customer is showing a $6 credit on their account because they over paid the invoice. So I followed the steps above. Write a check for $6 to the customer and used the Accounts Receivable account. Then I "Receive Payments' for $6 and clicked the check I created and the invoice that shows the $6 overpayment. The refund for $6 is not showing up in my undeposited funds to apply to my check register AND it shows $12 credit on their account.

I adjusted the receive payment for -$6, but then it still shows the account having a credit of $6. When I don't put an amount in the receive payment amount but click on the check and the invoice, it zero's out the account but where did this refund go? It doesn't show up in my "bank deposit" screen to allocate the funds/credit to the register as things hit our bank account. What am I missing here? The desktop version is way easier when it comes to credits. This is crazy.

@convertabath

"Then I "Receive Payments' for $6" <== Error, right there.

You didn't get Another $6. Use Amount = $0, here.

Thanks...if you look at my comments, when I entered $0, it did zero out the credit for the customer, but where does this payment/refund go? It's not showing in my undeposited funds so when I do my bank deposits, all my transactions will add up for me. In the desktop version, It would show the refund so I know that will be coming out of a deposit or if it was the only thing to post to the account that day, I have something for my register. Then when I reconcile with the bank, it all make sense without me having to figure out why something doesn't add up. Am I explaining that correctly?

"it did zero out the credit for the customer, but where does this payment/refund go?"
It isn't an Actual Payment; you used that Screen and that Function so that you can access Open transactions and apply available credits. Think of it as an Access point.

You typically use Receive Payment; you enter Amount actually paid to you, and you can Also apply available credits.

You can open the invoice and get to the same Available Credits from there.

You can open the original Payment and now you see newer, unpaid invoices, so you Apply the rest of the payment here and now.

"It's not showing in my undeposited funds"

There is no New Real Money. You told us you already have Negative $6 for them, and you gave it to them as AR. That = 0. But they need to be Applied to each other, to be Closed; otherwise, they each show as Aging = still available and not applied to anything, much less to each other.

"so when I do my bank deposits, all my transactions will add up for me. In the desktop version, It would show the refund so I know that will be coming out of a deposit"

You stated you Wrote a check as AR. That Check = from Checking, by definition. It's quoted here: "Write a check for $6 to the customer and used the Accounts Receivable account."

"I have something for my register."

You Wrote a check. Did you not print and send it?

"Then when I reconcile with the bank, it all make sense without me having to figure out why something doesn't add up. Am I explaining that correctly?"

Did you Send them the check? You needed to literally give them Money, for that to be Refunded.

I refunded their credit card as that was the original payment. So my customer is taken care of. Cutting a check is not an option for this customer. I followed the help guidelines....I researched refunding a customer who over paid an invoice and didn't see anything other than using the check option to refund. I don't use QB credit card services. What am I missing?

"I refunded their credit card as that was the original payment."

Using what? You own terminal? Intuit Merchant Account? Payments sending from QB from a Credit Memo?

"So my customer is taken care of. Cutting a check is not an option for this customer."

Let's review that the Data Entry of a Check as AR is done because you are Holding an overpayment that got refunded, even if that is paid to them some other way; this transaction is the placeholder that reflects: on this date, this amount will be removed from this account.

And the AR Credits and Debits need to be linked; that's why we use Receive Payment for Amount = 0.

"I followed the help guidelines...."
There are a Million "guidelines" on the internet for QB desktop, QB Online, QB for Mac, QB App for accessing QB Online through your Mac; for Intuit go payments or merchant accounts, or your own CC terminal service provider; or your Electronic banking.

There is no one Help Guideline. You need to use what Applies.

"I researched refunding a customer who over paid an invoice and didn't see anything other than using the check option to refund. I don't use QB credit card services. What am I missing?"

Let's review: You returned their funds using a method that will pay them their funds, and that is outside of QB. So, they get their money back.

Meanwhile, you needed to "do the bookkeeping" and since you were holding negative AR, you entered a Banking transaction (a pretend check) to show they are getting their money. As long as you apply it using Receive Payment for Amount = 0, you now can run AR Aging Summary and their name should not even be listed here.

Done.

Now you wait until you see the money is Taken from the bank.

Or, you are waiting for a Credit Card Settlement that is going to be lower, and that's why you are Confused? It will reduce a Gross Sales day Settlement to a Net to your banking?

In this example, I recommend you Remove your Check as AR. When you get your Banking settlement that is $6 missing, you will make an entry into the Deposit screen, which is like a Worksheet:
Customer Name, From AR, Negative $6. Now this Deposit has a reduced Net.

And now you are ready to use Receive Payment for 0 for that name, because now you just entered that you Lost $6 that day as part of banking, and they Got your $6.

See how it is One, or the Other, to meet your specific needs?

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.

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!