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Senior Explorer **

Customer refund for overpayment

The customer overpaid on an invoice that they paid for

with a check. I put the payment in under received payments in quickbooks. A pop up came up saying there was an overpayment and asked if I wanted to leave the credit to be used later or refund the customer. I chose refund the customer option. Another pop up came up with a check to be written out to the customer. I filled in the blanks and printed the check and mailed the refund. The refund is listed under accounts receivable. When I go back to the received payment from the customer, it has the check from the customerwith a checkmark next to it, as well as the check I wrote out to them with a checkmark next to it. If I go back to the invoice it says paid not refunded.  Was this a correct way to do the customer refund? I have quickbooks pro desktop. I did not create a credit memo for this just fallowed the prompts for the overpayment in the received payment section.

3 Comments
QuickBooks Team

Re: Customer refund for overpayment

It's nice to have you here on the Community page, @Jessica A.

 

I'm happy to help share information about recording refund in QuickBooks Desktop (QBDT).

 

What you're doing is correct when recording refund in QBDT. Since you'll issue a refund to your customer for the over-payment amount, you can just select on the REFUND THE AMOUNT TO THE CUSTOMER option and print a check to issue a refund to your customer.

 

The invoice will show as paid not refunded since the invoice was already paid. The refund is the check transaction that was printed after recording the over-payment.

 

To check for the refunded amount, you can go to the customer's transactions list.

 

  1. Go to the Customers menu.
  2. Select Customer Center.
  3. Click on the customer's name.
  4. Go to the Transactions section and look for the check created/printed for the refund. 

I've added these screenshots for additional reference.

f1 invoice1.PNG

f1 payment 2.PNG

f1 refund check 3.PNG

f1 customer's transaction list.PNG

I'm also attaching this article for further details about recording a credit memo or refund in QBDT: Record a credit memo or refund in QuickBooks Desktop.

 

Let me know if you have any other questions about recording refund. I'm just here to help!

Senior Explorer **

Re: Customer refund for overpayment

Thank you for the reply and screenshots. I noticed in one of the screen shots it listed the original amount, amount due, and amount paid they were all listed for 250. Shouldn't the amount paid be 500 since the customer paid $500 in this example? I see the $500 is  listed in the upper  portion of  the received payment screenshot, but down below it lists $250 as the amount paid. I thought in order for the pop up to come up to refund the customer the total amount received would be entered in the received payment then then the pop up would come up giving the option to refund. the amount in the lower portion the received payment screen For the amount paid I would think would be the same amount as above. Also- Just to clarify A refund can be created by creating a credit memo OR through the receive payment window am I understanding this correctly? 

QuickBooks Team

Re: Customer refund for overpayment

Hi @Jessica A,

 

Let me share some insight on this topic of recording an overpayment in QuickBooks Desktop (QBDT).

 

The first screenshot shows the amount of $250, which is the original amount on the invoice. The second screenshot shows the received payment which is the amount of $500 in this example, along with selecting the option to Refund the amount to the customer. The third screenshot shows the amount of $250, which is the overpayment amount. It's recorded as a check since you're trying to refund it to your customer. This way you recorded a $250 payment from your customer, as well as the $250 refund. 

 

As per your clarification, what you mentioned is correct. You can either record a credit memo transaction and use it for a refund, or create a refund directly from the Customer Payment screen.

 

In case you missed it, you'll find more detailed steps on how you can record a refund either by credit memo or via the customer payment screen from the article provided by @Angelyn_TRecord a credit memo or refund in QuickBooks Desktop

 

Let me know if you need anything else by leaving a comment below. I'll get back to you as soon as I can.