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KatieR2
Level 1

How to log when a partner pays back the company for an overpayment

Hello- I had a client that paid an invoice and then we ended up refunding his money a few weeks later. In the meantime the partner was paid so he then wrote a check to the company how do I log this in QB's. 

 

$10,000 Deposit into business account as accounts receivable (Client paid invoice)

$10,000 Check paid to partner of the firm (Member Draw- Partner X)

$10,000 Refund check to the client

$10,000 Deposit from Partner X to return the money to the firm - How is this logged in QB's? Partner contribution? 

 

Thank you!

3 Comments 3
Charies_M
Moderator

How to log when a partner pays back the company for an overpayment

Thanks for giving such detailed information, KatieR2.

 

You can write a check to refund your customers for their overpayment. Writing a check allows you to return the money to your customer. This will then show as your expense which will be reflecting in the returned account.

 

To achieve this, follow the steps below:

  1. Click on Banking from the menu bar.
  2. Choose Write Checks.
  3. Select the Bank Account where funds should be taken out from.
  4. In the expenses tab, choose Accounts Receivable from the Account column.
  5. Enter the refund amount.
  6. In the Customer: Job column, choose the customer name.
  7. Click on Save & Close.

Find out more about recording refunds in QuickBooks Desktop by visiting this article: Record a Credit Memo or Refund in QuickBooks Desktop.

 

You'll also want to customize customer, job, and sales report in QuickBooks Desktop to focus on the information that matters most to your business.

 

If you need other helpful articles in the future, you can always visit our site: Help articles for QuickBooks Desktop.

 

I've got your back if you need more help. I'm always happy to lend a hand. Have a good one.

KatieR2
Level 1

How to log when a partner pays back the company for an overpayment

Thank you for the information! My question is how to I log the deposit from the partner who it returning the funds that were paid to him? It was an partner draw when he was paid so what should it be when he returns the money to the firm? Partner Contribution? 

MaryLurleenM
Moderator

How to log when a partner pays back the company for an overpayment

Thank you for the clarification, KatieR2.

 

You'll want to create a deposit and use the same account when your partner was paid. This will offset the recorded overpayment in QuickBooks.

 

However, you'll want to seek assistance from an accountant to make sure you're recording this correctly. 

 

As you continue working with QuickBooks, you can also open this link for more information about the different ways to track customer transactions: Get started with customer transaction workflows in QuickBooks Desktop.

 

Feel free to visit the Community if you have any clarifications or questions. I’ll get back to answer them for you.

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