Customer refunds

The client paid twice on one invoice. (with 2 payments). I created refund checks to the client. When 

I followed your instructions to refund the client exactly as stated through received payments, pulled up the customer, toggled the amount, then apply credits-  it cleared the credits on the AR aging however it created a deposit to be posted. How do I fix this? Should I void the checks that were written- then follow the process?

Hi there, Shawn.

Let me help you go over your checks and check why it cleared the credits on the AR aging however it created a deposit to be posted.

Let me show you how:

1. Go to your menu Banking then Write Checks.
2. Choose the appropriate bank account
3. Choose the appropriate check number and date.
4. Choose this same customer in the Pay To The Order Of field.
5. Fill in the amount of the overpayment you wish to refund.
6. Very important to choose Account Receivables in the expenses tab near the bottom of the screen.
7. Click Save & Close.

Note, if you get a warning that states "Please choose a customer when using an Accounts Receivable account as a line item" then choose this exact same customer in the field (within the same Expenses tab off towards the right) called Customer:Job if this field does not exist, then you may have to change a company preference setting.

Now, If you look at this customer's AR balance, this check refund should be reflected here, however, you still need to apply this check refund to the overpayment credit; otherwise, these two line items will always appear as open. To do this:

1. Highlight the customer in the customer list, then click on  New Transaction (at the top of the customer list, not in the company menu list) and choose, Receive Payments.
2. Within the Receive Payment screen:
   - Don't fill in a payment amount; instead, just highlight (not checkmark) the outstanding check payment amount as listed in the open invoices list, then click on Discounts & Credits listed as one of the button items towards the top.
   - Find the Available Credit which is the overpayment amount and be sure it is check marked. click Done.  

You will now notice there is a new column called Credits and thus the NET of the Amount Due + Credits is equal to zero.

I'm also adding some articles below to view various ways you can track customer transactions in QBDT. Then, how Accounts Payable is used to track the money you owe your vendors and how it works:

• Accounts Receivable workflows in QuickBooks Desktop
• Accounts Payable workflows in QuickBooks Desktop

Do you have other questions about invoices and overpayments? Please let me know by leaving a reply. I am always around to help

This is not working for me as the customer has already paid the invoice so there is no invoice.  When I try to apply the credit at the bottom it will not allow me to check the box as there is no invoice for the customer.

I had a customer pay for an invoice twice on one check.  I applied the entire amount to the invoice, which created a credit.  I followed information in the knowledgebase and created a refund receipt and then printed a check back to the customer for the overage.  The credit is still sitting in the customer's account.   I have the original invoice, the overpayment (which says the dollar amount credit under Paid) and then a refund.

Great work so far, Kelly79. To complete the process, link the refund to the customer's overpayment using the Receive Payment feature to clear the balance. Let’s walk through the steps together.

When refunding customer overpayments in QuickBooks, ensure that Accounts Receivable is the affected account and select the desired customer for the refund.

Since you've already created a refund receipt using a check, you can now link it to zero out the credit.

Here's how:
 

1. Go to the Customers menu and select Receive Payments.
2. From the Received from dropdown, select the Customer.
3. Select the Discounts and Credits icon.
4. In the Available Credits section, select the check you created and then click Done.
5. You may see a prompt to confirm the transfer. If you do, select Yes. The amount will be applied automatically to the invoice.
6. Click Save & Close.
    

You can check out this article for additional reference in handling credits in QuickBooks Desktop: Give your customer a credit or refund in QuickBooks Desktop for Windows.

Furthermore, I'm attaching this article for future reference in case you need to void customer payments in QuickBooks: Void or refund customer payments in QuickBooks Desktop.

This is not working.  When I try to check the box that says Unapplied Payment under Credits, I get the message that says I must select an invoice before adding a credit.  There is no invoice to select as it closed out when I applied the (over)payment from the customer.

Thanks for getting back, Kelly. I truly appreciate the dedication you've shown in attempting to resolve your customer's overpayment. To ensure this matter is settled efficiently, I'll now route you to the appropriate support channel.

In QuickBooks Desktop (QBDT), customer credits remain available if there isn't an outstanding invoice. This may be applied to the next invoice you generate for them.

Since you're still having problems managing your client's credits, I recommend contacting our Live Support Team. They have the tools to access your account in a secure environment, check your customer transaction records, and provide a resolution. Here's how to reach them:
 

1. Open QuickBooks.
2. Go to Help and pick QuickBooks Desktop Help/ Contact Us.
3. Tap Contact Us.
4. Enter a brief description of your concern, then hit Continue.
5. Sign in to your Intuit account. Click Continue and then Continue with my account.
6. A single-use code will be emailed to you. Enter them and select Continue.
7. Choose to Chat with us or Have us call you.
    

Support for Pro, Premier, and Plus editions is accessible from M-F 6 AM to 6 PM. In contrast, Enterprise users benefit from round-the-clock support, available 24/7. 

Additionally, I'll share this resource to learn more about how to issue credits or refunds to customers: Give your customer a credit or refund in QuickBooks Desktop for Windows.

If you have further questions about applying credits or managing payments in QBDT, please don't hesitate to reach out. I am always here to provide guidance, and I'm committed to helping you navigate the program with confidence. Your success is important to me, Kelly.