Created with Sketch.Learn about PPP and Loan Forgiveness, stay informed with the latest changes.
Created with Sketch.Questions about how to close your books for 2020? Visit our Year End Resources page.
Created with Sketch.New to QuickBooks or using a new product? Visit our Get Started resource page to help you get going.
Created with Sketch.Need to make changes to your account? Visit the Account Manager Portal.
cancel
Showing results for 
Search instead for 
Did you mean: 
Level 1

How to resolve an overpayment in QBO

Using QBO. We had a client who paid an invoice for $1,000 twice with electronic EFT payments (2 x $1,000). We refunded $1,000 the next day also via EFT payment.

Both excess transactions are sitting now in the banking download. How can I get those two transactions connected and cleared through the review process?

Thanks! 

1 Comment
Moderator

How to resolve an overpayment in QBO

Let's sort things out so you'll have a correct data in QuickBooks Online, Nordi.

 

We'll have to record everything that happened so we can match your QuickBooks data to the downloaded bank transactions. First, we'll have to enter the invoice payment under the Underposited Funds account. Here's how:

  1. Open the affected invoice and click the Receive payment button.
  2. Select the checkbox for the invoice you’re receiving payments for.
  3. Select Undeposited Funds in the Deposit to field.
  4. Enter the necessary details and click Save and Close.

For the over-payment, we can record a bank deposit affecting the Accounts Receivable account. Here's how to do it:

  1. Click the + New button in the upper-left corner and select Bank deposit.
  2. Select the bank account in the Account field where the over-payment was deposited.
  3. Enter the Date and go to the Add funds to this deposit section.
  4. Select the customer in the RECEIVED FROM column.
  5. Select Accounts Receivable in the ACCOUNT column and enter the over-payment amount.
  6. Click Save and close.

For the refund you've sent to your client, you can enter it as a Check or Expense in QuickBooks Online.

  1. Click the + New button in the upper-left corner and select Check or Expense.
  2. In the Payee field, you can enter the customer name or leave it blank.
  3. Select the Bank account and enter the refund date in the Payment date field.
  4. Go to the Category details section and enter the Accounts Receivable in the CATEGORY column.
  5. Enter the refund amount and select the customer name in the CUSTOMER/PROJECT column.
  6. Click Save and close.

To connect the over-payment and the refund amounts, here's how to do it:

  1. Click the + New button in the upper-left corner and select Receive payment.
  2. Select the Customer and enter the Payment date.
  3. Under the Outstanding Transactions section, mark the Check you've created earlier.
  4. Under the Credits section, mark the bank deposit you've created earlier.
  5. Make sure the AMOUNT RECEIVED is equal to zero ($0.00).
  6. Click Save and close.

Now that we've recorded all the transactions and linked them from each other, we can already move to your downloaded bank transactions.

  1. Select Banking/Transactions on the left menu and go to the Banking tab.
  2. Highlight the connected bank account and go to the For review section.
  3. Match the two downloaded deposits to the invoice payment and the bank deposit you've created earlier.
  4. Match the downloaded check to the one you've recorded in QuickBooks Online. You can wait for it until the transaction is cleared from your bank though.

You might also find these articles helpful when following the process I've laid out for you:

You can always get back to us if you have additional questions of the steps I've provided above. Have a great day!

Need to get in touch?

Contact us