Customer refund - overpayment

Welcome to the Community, @barryjohnson21. I'm here to help with refunding your customer. 

So that I'm able to provide you with the best resolution, could you please provide additional insight about how you want to create the refund? In the meantime, I'm including an article which covers refunds in QuickBooks Online (QBO): Record a customer refund.

I'll be keeping an eye out for your response. Take care.

The customer has an overpayment on their invoice and I would like to clear that balance on their account by refunding the additional payment back to their card. 

Hello again, @barryjohnson21. I appreciate you providing that clarification about the refund. 

The following article provides an overview of refunding a payment: Void or refund transactions in QuickBooks Payments. It also contains the necessary steps to issue a refund to a customer's credit card.

Please let me know if you should need anything. Have a good day. 

if a customer had a bill for $1000.00 

the Customer paid $1050.00 

now I give them back $50.00 

(they paid via check) 

how do I PAIR the overpayment with the refund receipt?

I don't want to delete/void ect.. because that money DID go into our account and has to be accounted for.

Welcome and thanks for joining this conversation, @Hoyabyrd.

I appreciate the details you've provided. Allow me to chime in and share some information about refunding a customer overpayment in QuickBooks Online (QBO).

When creating a Refund Receipt, it won't affect the customer's balance (accounts receivable), only the bank balance. This transaction can't be paired with the overpayment. You can write a check or expense to record the refund instead, which will reduce your bank's balance, and offsets the overpayment.

Before we proceed, please consider deleting the refund receipt. Once done, here's how to enter the check/expense:

1. Go to the Plus icon, then pick Check under Vendors column.
2. On the Category details section, enter/choose the following:

• Accounts - Accounts Receivable.
• Amount - Overpayment amount.
• Customer - Customer's name.

3. Hit Save and close.

After that, pair it with the credit/overpayment:

1. Go back to the Plus icon and pick Receive Payment under Customers column.
2. Choose the customer's name on the Customer field.
3. Select the check/expense created on the Outstanding Transactions section and the Unapplied Payment on the Credits section.
4. Ensure that the Amount Received is zero, then hit Save and close.

That should do the trick. I'm also including this article for additional information: Record a customer refund.

Please let me know how it goes or if you need anything else. I'm always here for further assistance. Take care and have a good one.

you are the best! This worked perfectly. Thank you thank you!!!!

How do you do this in QB Enterprise?

Thank you

Rhonda

@rhondanelson14  Welcome to community!

To get more context to what type of help you need, are you asking how to process a refund for an over payment or how to convert an over payment into a credit for later use on a customers profile?

I'm having trouble finding out what to do when I need to issue a refund for an overpayment but NOT to the payee themselves. 

Ex: My customer overpaid an insurance claim by $500 and the insurance company needs to be reimbursed. The customer has requested that we refund that $500 directly to their insurance company and not themselves. I cannot follow the basic instructions which you have listed here b/c it keeps trying the "payee" as the customer when really the payee is the insurance company. PLEASE HELP!

Thanks for joining the thread, @Nbraun14. I acknowledge the difficulty you're having in recording this transaction. I'm here to assist you in managing this overpayment properly.

You can handle this overpayment by creating a check transaction affecting your Account Receivable (AR). Let me show you how.

To begin, ensure that you recorded the invoice and created a receive payment transaction with the overpayment. Doing this will automatically record the overpayment as a credit for the customer.

Then, create a check transaction.

1. Go to +New and choose Check.
2. Choose anyone for the payee. But ensure that you select AR for the Category and the Customer that made the overpayment.
3. Input the overpayment amount. 
4. Click Save and close.

We can now link the overpayment and the check transaction we created using receive payment.

1. Go to +New and choose Receive payment.
2. Choose the customer's name.
3. Tick the check we created in the Outstanding Transactions section and the overpayment in the Credits section.
4. Click Save and close.

Additionally, you can run a report to get an overview of your business finances. 

Let me know if you need further assistance managing your overpayment in QuickBooks. I'll be here to lend a hand.