Let me show you how to properly record it, Aleem Shaik.
First, make sure to record the customer payment and deposit it to the Undeposited Funds. You can check the detailed steps here: Deposit payments into the Undeposited Funds account in QuickBooks Online.
Then, follow these steps to record the overpayment:
- Deposit the payment into the XYZ bank account.
- On the Add funds to this deposit section, enter the details of the overpayment.
- Select Save and close.
Once done, let's transfer the overpayment from XYZ to ABC bank.
- Go to the +New button and select Transfer.
- Select XYZ in the Transfer Funds From drop-down and ABC in the Transfer Funds To.
- Enter the amount, then Save and close.
The next step is to create a Check or Expense affecting Accounts Receivable to offset the overpayment. Go to the +New button and select either Expense or Check. The last step is to link the refund to the overpayment.
- From the + New button, select Receive payment.
- Enter the details needed. Under the Outstanding Transaction section, select the checkbox for the Expense or Check you created.
- Select Save and close.
If you need help with matching transactions and reconciling an account, please check these links:
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