Customer Overpayment & Refund

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:

1. Deposit the payment into the XYZ bank account.
2. On the Add funds to this deposit section, enter the details of the overpayment.
3. Select Save and close.

Once done, let's transfer the overpayment from XYZ to ABC bank.

1. Go to the +New button and select Transfer.
2. Select XYZ in the Transfer Funds From drop-down and ABC in the Transfer Funds To.
3. 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.

1. From the + New button, select Receive payment.
2. Enter the details needed. Under the Outstanding Transaction section, select the checkbox for the Expense or Check you created.
3. Select Save and close.

If you need help with matching transactions and reconciling an account, please check these links:

• Categorize and match online bank transactions in QuickBooks Online
• Reconcile an account in QuickBooks Online

Leave a message again here if you have other concerns. We'll respond as soon as we can.

Dear,
Thanks for your reply but there is no transfer from XYZ to ABC. The overpayment still with XYZ but we have transferred the amount from ABC to the customer.

How do I adjust the same in the QB Online?

Regards,

Aleem

Thanks for coming back for more support, @Aleem Shaik. I understand you want to adjust customer overpayment without affecting your revenue and accounts receivables. 

To get these things done, you can create a journal entry to move money between accounts and force your books to balance in specific ways. Here's how: 

1. Go to the + New menu, then select Journal entry.
2. On the first line, select an account from the Account field. Depending on if you need to debit or credit the account, enter the amount in the correct column.
3. Select the other account you're moving money to or from on the next line. 
4. Check the amounts - you should have the same amount in the Credit column on one line and the Debit column on the other to make sure it's balance.
5. Enter details in the memo section so you would know why you made the journal entry, then select Save and close.

To make sure your books are accurate, I'd recommend consulting your accountant. 

Just in case, read through this article for your future reference on applying credit from one customer to another?. 

Feel free to message again if you have more questions. I'm always around here to help.