double payment

finances1 · ‎May 26, 2021

In December I had our customer (#1) pay for their invoice. that payment was applied. In the meantime I applied a payment from a totally different person. (Neither a customer nor a vendor with our company). (I thought it was cust #1's customer (called other) actually paying us direct). In April I issued a check (with an explanation) to "other". Since there was no paper work for other I created a credit memo to apply the cut check against. Cust #1 account however shows open balance being -921.14 and an overdue balance of 0. how do I clear the open balance?

Tori B · ‎May 26, 2021

Hey there, @finances1.

Thanks for reaching out to the Community for support.

Since it sounds like you've applied an overpayment to the invoice for customer 1, I recommend we create a credit memo and apply the credit to customer 1's invoice. Then delete the original overpayment. When you had applied a credit memo to the overpayment instead of the original invoice and created a check for customer 2, it left us with an open balance for customer 1. I've included the steps to create and a credit memo below to reference.

Click the + New button.
Choose Credit memo.
In the Customer dropdown, select the customer's name.
Key in the credit memo details, such as the date and amount.
When finished, hit Save and close.

For additional details to apply the credit, check out Create and apply credit memos or delayed credits in QuickBooks Online. However, before completing these steps, it's always best to consult with your accountant first. Your account will know the right course of action for you and your business. If you don't have an accountant, you can find one here in our Resource Center.

Please let me know in the comments if you have further questions or concerns. I'll be here every step of the way. Take care and have a great day!

View solution in original post

AlexV · ‎May 27, 2021

Hi finances1!

I understand that you need to zero out the open balance. I'm joining here so I can help you.

Closed books mean you're locking the data to prevent accidental changes that might mess it up. My colleague suggested to temporarily change the closing date or edit your closed books if you need to make an update. Check these links for your reference:

In addition, it's normal to have a negative open balance since you created a credit memo. It'll change to zero once you apply the credits to an open invoice.

Now, if this credit memo is incorrect or for a different customer, you can delete it or assign it to the correct client. Follow these steps:

Find and open the credit memo you created.
Select the correct Customer. If not, click the More button and select Delete.
Tap Save and close to save the changes or Yes to confirm the deletion.

Please check this article to fully understand the purpose of credit memo: Create and apply credit memos or delayed credits in QuickBooks Online.

Need to reconcile your accounts? You can check the steps here: Learn the reconcile workflow in QuickBooks.

Post again here if you have other clarificatons. Thanks!

View solution in original post

Tori B · ‎May 26, 2021

Hey there, @finances1.

Thanks for reaching out to the Community for support.

Since it sounds like you've applied an overpayment to the invoice for customer 1, I recommend we create a credit memo and apply the credit to customer 1's invoice. Then delete the original overpayment. When you had applied a credit memo to the overpayment instead of the original invoice and created a check for customer 2, it left us with an open balance for customer 1. I've included the steps to create and a credit memo below to reference.

Click the + New button.
Choose Credit memo.
In the Customer dropdown, select the customer's name.
Key in the credit memo details, such as the date and amount.
When finished, hit Save and close.

For additional details to apply the credit, check out Create and apply credit memos or delayed credits in QuickBooks Online. However, before completing these steps, it's always best to consult with your accountant first. Your account will know the right course of action for you and your business. If you don't have an accountant, you can find one here in our Resource Center.

Please let me know in the comments if you have further questions or concerns. I'll be here every step of the way. Take care and have a great day!

finances1 · ‎May 26, 2021

Thanks for your help Tori. How do I work around the fact that this all happened in last year's closed books except the check that was cut? I can't go back and delete or add anything to 2020.

Kristine Mae · ‎May 26, 2021

Let me help you get around your concern, Finances1.

We'll have to edit the closing date so you can make some changes. However, it will change your data or reports as well since you're editing or deleting transactions.

You can follow these steps to edit the closing date:

Click the Gear icon.
Select Account and settings.
Go to the Advanced tab.
Click the Pencil icon in the Accounting section.
Change the closing date.
Click Save, then Done.

Once done, you can follow the workaround provided by Tori B.

Also, I suggest reaching out to your accountant for other options.

If there's anything else that you need, don't hesitate to let us know. We'll be right here to help you. Take care!

finances1 · ‎May 27, 2021

I'm confused when you say to change closing date. The closing date was 12/31/2020. I can't go back and change the actual entry made in 2020. I have corrected the account for customer 2. What I can't seem to do is zero out the negative open balance amount.

AlexV · ‎May 27, 2021

Hi finances1!

I understand that you need to zero out the open balance. I'm joining here so I can help you.

Closed books mean you're locking the data to prevent accidental changes that might mess it up. My colleague suggested to temporarily change the closing date or edit your closed books if you need to make an update. Check these links for your reference:

In addition, it's normal to have a negative open balance since you created a credit memo. It'll change to zero once you apply the credits to an open invoice.

Now, if this credit memo is incorrect or for a different customer, you can delete it or assign it to the correct client. Follow these steps:

Find and open the credit memo you created.
Select the correct Customer. If not, click the More button and select Delete.
Tap Save and close to save the changes or Yes to confirm the deletion.

Please check this article to fully understand the purpose of credit memo: Create and apply credit memos or delayed credits in QuickBooks Online.

Need to reconcile your accounts? You can check the steps here: Learn the reconcile workflow in QuickBooks.

Post again here if you have other clarificatons. Thanks!

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