Customer Overpayments

Hi there, @ASH110. I'm here to guide you to easily record the overpayment you received from your customer in QuickBooks Online.

If your customer has paid more than the invoice amount, you don't have to create a credit memo. It's because you will already have an unapplied credit, which can act as your credit memo once you record a receive payment for the invoice. If you create a credit memo and receive payment to mark the invoice paid, it will result in duplicate entries. Therefore, I recommend following these steps to record the overpayment:

1. Click the +New button, then select Receive Payment.
2. Select the customer's name in the Customer dropdown, then choose the Payment method. If this is a check, select where you want to deposit this in the Deposit to section. 
3. In the Outstanding Transaction section, select the invoice.
4. In the Amount received field, enter the total amount you received, including the overpayment.
5. Click Save and Close.

Once done, you can check the Customers tab in the Sales menu for the invoice transaction. It may look like the image below: 

If you want to apply the unapplied credit for future or next invoices, you can use the same steps I provided above.

Furthermore, you can record a refund if you want to return the overpayment you received or return it for goods or services that didn't satisfy your customer.

I'm always ready to help if you need further assistance in managing overpayments or other concerns with QuickBooks. Stay safe always!