Refunded a client but there is a balance due left, how do I eliminate this?

I'm here to help you resolve this, Comet52.

Let's ensure you've recorded the payment before creating the refund. It can be a reason why the customer still has a due. Also, we'll have to make sure the refund receipt has the right amount. This way, it will eliminate the balance.

If the invoice is paid already, we can check if your customer still has some open invoices. Here's how:

1. Click Sales.
2. Go to the Customers tab, then select the customer.
3. Click Filter.
4. Under Type, select Open invoices.
5. Click Apply. 

If there are open invoices, you can receive the payment if it's already paid or leave it as is if it's not. 

Feel free to get back to this thread if you need more help. We're just one comment away. Take care!

Sorry, I was not able to be clear in my original request.    

Here is what happened: wrote an invoice for 1600, customer deposited 1200.  Later issues arose and agreed to cancel and refund them.  Did that.  Now I have the invoice showing a balance due of 400.   What is the correct way to close this out?

To clarify, I have the invoice showing payment of 1200 and 400 due, and a separate refund receipt where I paid the customer back the 1200.

Thanks for coming back, comet52.

The invoice will show as a balance due of $400 since your wrote an invoice for $1600 and the customer deposited $1200. If you can't collect the remaining balance from the customer, we can write off bad debt in QuickBooks Online (QBO). When invoices you send in QuickBooks become uncollectible, you need to record them as a bad debt and write them off.  Also, you can sometimes write off bad debt as a deduction if your business uses accrual method accounting. First, review other invoices or receivables that should be considered as bad debt using the Accounts Receivable Aging Detail report. Here's how:

1. Go to the Reports menu.
2. Find and open an Accounts Receivable Aging Detail report.
3. Check which outstanding accounts receivable should be written off.

then, follow the next steps in the Write off bad debt in QuickBooks Online article. If the customer will pay what he owes, just follow the steps provided by my colleague. Feel free to visit our Sales and customers page for more insights about managing your company's income and customers.

Please update us after performing the steps, as I want to ensure this is resolved for you. Please reply to this post and I'll get back to you. You have a good one. 

It's a canceled order not bad debt.   

Joining the thread to share more steps that can remove the balance, comet52.

You can either edit the invoice and make it $1200 or void it completely to remove the remaining balance. Here's how:

1. Go to the Sales menu and proceed to the Invoices tab.
2. Find and open the transaction. You can also click on it and select Edit invoice.
3. Change the amount of the invoice if you want to edit it.
4. If you want to void it, click More in the footer.
5. Select Void and click Yes to confirm that you want to void it.

Feel free to check out these articles for additional reference:

• How to Duplicate an Invoice or an Estimate
• How to Refund a Deposit and Close an Invoice

As always, feel free to reply again or post new questions in the Community if you need more help with QuickBooks.