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Level 2

How do you get rid of negative balance and open balance on customers account? A lot of them resulting because of refunds

 
4 Comments
Anonymous
Not applicable

Re: How do you get rid of negative balance and open balance on customers account? A lot of them resulting because of refunds

The negative open balances (resulting from refunds issued) indicate to me that the refund was either:

  1. not linked to the customer - or
  2. was linked to the customer but has not yet been applied to the CM.  

If 2 then you start the 'receive payments' function for each customer, look for unpaid invoices, then mark them for payment and 'apply credits' to link and close the open items.

If 1 then ideally you would find and open the refund cheques - add the customer name into the name field - save the change then repeat step 2 above. 

Both these options assume the refund cheque was coded to AR.

 

If the refunds were coded to some type of expense then its a different situation with different solution.

Level 2

Re: How do you get rid of negative balance and open balance on customers account? A lot of them resulting because of refunds

Thank you, Mike. That was very helpful. What about anyone customer with a negative open balance as a result of over payment? Like someone was supposed to pay $300 but ended up paying $450 and it would show there is an open balance of -$150..

 

How do we get rid of that balance in AR?

 

 

Thanks

QuickBooks Team

Re: How do you get rid of negative balance and open balance on customers account? A lot of them r...

Hey there, @humptydumpty.

 

A negative balance on your customer account denotes that there's a credit owed to them. I'd be happy to add more details about this and help you further.

 

When your customer overpays an invoice, it'll automatically show a negative balance. To remove this, you have the option to create a credit memo and apply it to their next invoice. Or you can issue them a refund receipt.

 

To create a credit memo, you can follow the steps below:

  1. Click on the Plus (+) icon.
  2. Choose Credit Memo.
  3. Enter the customer name.
  4. In the Amount column, enter the balance of your customer.
  5. Click on Save and Close.

Once done, you can then apply the credit memo to the next invoice.

 

To create a refund receipt, kindly follow the steps below:

  1. Click on the Plus (+) icon.
  2. Choose Refund Receipt.
  3. Enter the customer name.
  4. In the Amount column, enter the customer balance.
  5. Click on Save and Close.

Please don't hesitate to get back to us if you have any other concerns.

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Anonymous
Not applicable

Re: How do you get rid of negative balance and open balance on customers account? A lot of them resulting because of refunds

As Alessandra said the 2 choices are to pay the customer a cash refund or hold an open credit memo for future use.
If your not planning on issuing a cash refund, and dont expect to deal with customer again then you can 'write it off' in your favour by issuing a new invoice for (some fee or charge) and then apply the open payment to close the new invoice.

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