Hi KJO1.
Thanks for the details a lot. Yes, you're right. You can create an invoice to record this payment and make sure that the item won't fall to an income account since it's for the purpose of asking the customer to pay to return the money.
You can create a new service item for that, and then I suggest consulting for an accountant on what account should it fall.
Here's how to create a new service item:
- Go to Lists menu then select Item List.
- On the Item drop-down, choose New.
- Fill in the details, especially the Account textbox.
- Click OK.
Once done, you can now create an invoice and choose the service item that you've created, then enter the over refund amount.
Also, I'll be sharing this article once you have received the payment and record it to QuickBooks: Receive and process payments in QuickBooks Desktop.
Feel free to post a comment below if you need further assistance. I'll be around to help. Stay safe and well!