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Level 2

Need Help Clearing a payment that was not applied to an invoice.

I deposited a check to a customer but the check was not intended for us. We sent the customer a check as a refund. Now the original check amount is sitting on the account as a credit. Is there a way to apply this credit against the check that was sent out by accounts payable to balance this out.

 

More details: Check for Customer A total is $7794.00 applied to invoice then realized check was intended for a different company down the hall and mailed to us by accident. Check was already deposited and books for that month was closed so I just unapplied the payment to the invoice but left the amount on account as a credit. We issued Customer A a check as a refund for $7794.00 which they cashed but the original payment is still sitting on account as a credit. How do I apply that credit against the check we mailed out to the customer?

Solved
Best answer 02-25-2020

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QuickBooks Team

Need Help Clearing a payment that was not applied to an invoice.

I appreciate you getting back to us, @Constdan91.

 

It seems that you've created a bill and processed a bill payment check for the refund. That way, you won't be able to change the account used for the transaction. You'll have to write a check so you can apply it to the payment. Let me guide you through the process.

 

Before we proceed, please make sure to delete the bill and bill payment transactions to avoid discrepancies in your balance.

 

First off, let's write a check for the refund and associate it with the Accounts Receivable account. Here's how:

 

  1. In your QuickBooks Desktop, click Banking and select Write Checks.
  2. Select the appropriate bank account from the drop-down.
  3. Choose the vendor from the Pay to the Order of drop-down.
  4. In the Expenses tab, select the Accounts Receivable account from the drop-down.
  5. Select the customer from the Customer:Job drop-down.
  6. Click Save & Close.

Once done, open the customer payment and the credit on it. 

 

  1. Go to the Customers menu, then select Customer Center.
  2. Select the customer from the left menu and open the payment from the Transactions tab.
  3. Put a checkmark on the $7,794 amount to apply as a credit.
  4. Click Save & Close.

As always, you can visit our QuickBooks Community help website if you need tips and related articles in the future.

 

Please know that you can always get back to this post if you have any other questions. I'll keep an eye on your response. Have a good one.

View solution in original post

3 Comments
Highlighted
QuickBooks Team

Need Help Clearing a payment that was not applied to an invoice.

Good day Constdan91,

 

You’ll want to open the check and choose the account to Accounts Receivable this way amount in the credit will be removed.

 

You can check this article for additional information on how to manage your QuickBooks account moving forward: Help articles.

 

Come back if you have any other concerns. I’ll be here.

Highlighted
Level 2

Need Help Clearing a payment that was not applied to an invoice.

My AP rep says she does not have an option on her screen to change the check account to accounts receivable. I attached a screenshot of what she sees when she opens check.cheque.jpg

Highlighted
QuickBooks Team

Need Help Clearing a payment that was not applied to an invoice.

I appreciate you getting back to us, @Constdan91.

 

It seems that you've created a bill and processed a bill payment check for the refund. That way, you won't be able to change the account used for the transaction. You'll have to write a check so you can apply it to the payment. Let me guide you through the process.

 

Before we proceed, please make sure to delete the bill and bill payment transactions to avoid discrepancies in your balance.

 

First off, let's write a check for the refund and associate it with the Accounts Receivable account. Here's how:

 

  1. In your QuickBooks Desktop, click Banking and select Write Checks.
  2. Select the appropriate bank account from the drop-down.
  3. Choose the vendor from the Pay to the Order of drop-down.
  4. In the Expenses tab, select the Accounts Receivable account from the drop-down.
  5. Select the customer from the Customer:Job drop-down.
  6. Click Save & Close.

Once done, open the customer payment and the credit on it. 

 

  1. Go to the Customers menu, then select Customer Center.
  2. Select the customer from the left menu and open the payment from the Transactions tab.
  3. Put a checkmark on the $7,794 amount to apply as a credit.
  4. Click Save & Close.

As always, you can visit our QuickBooks Community help website if you need tips and related articles in the future.

 

Please know that you can always get back to this post if you have any other questions. I'll keep an eye on your response. Have a good one.

View solution in original post

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