Thanks for posting in the Community space, @HLADD.
The possible reason why it still shows a balance is that when you create a credit memo it doubles the overpayment and the refund offsets it. While the original overpayment is still in your account.
To fix this, you can write a check to your Account Receivable(A/R) to zero the overpayment of your customer. You can use the same bank account originally used when depositing the payment from your customer. Let me show you how.
- Click on Banking from the menu bar.
- Choose Write Checks.
- Choose the Bank Account where funds should be taken out from.
- In the expenses tab, choose Accounts Receivable from the Account column.
- Enter the refund amount.
- In the Customer: Job column, choose the customer name.
- Click on Save & Close.
For further guidance, you can refer to this article: Record a Credit Memo or Refund in QuickBooks Desktop.
Also, I've included this article to learn different ways on how to track your customer transactions: Get started with customer transaction workflows in QuickBooks Desktop.
Additionally, I'm adding this article to further guide you in managing the growth of your business using QBDT: QuickBooks Help Articles. It includes topics about data security, banking, and expenses, to name a few. You can click the + More topics button to view other selections.
Please let me know in the comment section below if you have other questions with overpayments or should you need anything else. I'll be happy to answer them.
