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pkwith
Level 3

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

This is a Quickbooks Mac Desktop 2019 question.

 

Client has 5 outstanding invoices totaling $455

 

Received a check from client in the amount of $555

 

If I accept the payment client will have a credit in the amount of $100

 

How do I refund the $100 credit to the client?

Solved
Best answer February 27, 2019

Best Answers
PreciousB
Moderator

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Thanks for joining this conversation, kellyconn.

 

Let me help you record a refund check for your customer.

 

Since there is already an existing credit, you can directly create a check for the customer.

 

Let me show you how:

  1. Choose Banking, then select Write Checks.
  2. To write a new check, click the “New Check...” on the left panel or click the + at the bottom of the list.
  3. Under the Expense column, make sure to select Accounts Receivable.
  4. Enter the information for the check, and click Save.

Next, connect the check and the overpayment amount by using the Receive Payment feature.

 

Here's how:

  1. Choose Customers, then select Receive Payments.
  2. Choose your desired customer whom you wrote the refund check. You'll see the amount of the credit included in the Existing Credits field and the refund check at the bottom section of the window.
  3. Select the Apply Existing Credits checkbox.
  4. Enter the amount in the Payment column, if not already entered by QuickBooks, then select OK

 

That should answer your question. If you have any questions or clarifications about QuickBooks, please leave a comment below. Have a good one.

View solution in original post

20 Comments 20
Rustler
Level 15

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

in receive payments enter the actual amount received

QB will ask if you want to retain the customer credit or issue a refund

pkwith
Level 3

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Here is my screen.

 

I am trying to locate where iI receive a choice

 

 

pkwith
Level 3

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Also.

 

If I click the Refunds and Credits button - I am only  able to create a credit. I am completely unable to figure out how to convert the credit to a refund.

 

 

Rustler
Level 15

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

on the receive payment screen you show, hard to read but it should show 555 upper left, it so save

that is when you get the prompt to retain or refund

pkwith
Level 3

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Thanks for your response.

 

I can vehemently respond that I have never received such a response to issue a refund.

 

That may be intended but I have never seen it. 

 

Saving the payment screen just saves the payment with a credit

pkwith
Level 3

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Here is the screen I get when saving the payment that includes an overpayment

 

 

PreciousB
Moderator

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

It's great to see you today, pkwith.


Thanks for your screenshots. I'll join in this thread to help you create a refund check for your customer in QuickBooks for Mac 2019.


On the payment screen, please click the OK button to save the customer’s overpayment.


When refunding money to a customer, you’ll first have to create a credit memo and then write a refund check.


You can follow the steps I’ve laid out below:


To create a credit memo:

  1. Select Customers, then choose Create Credit Memos/Refunds.
  2. Click the Create a Credit Memo option on the left panel or click the plus sign icon +  at the bottom of the list.
  3. Enter the needed information for the credit memo, and click Save.

To write a refund check:

  1. Open the credit memo you want to use for the refund.
  2. Click the Refund button at the top of the window.  
  3. Make sure all the information on the check is correct.
  4. Leave Accounts Receivable as the account in the detail area of the refund check. This ensures that QuickBooks will account for the credit and refund correctly.
  5. Click OK.

Once done, you’ll need to connect the refund check to the credit memo so that QuickBooks can track the transaction correctly.


Here’s how to connect the refund check to the credit memo:

  1. Select Customers, then choose Receive Payments.
  2. Choose the customer to whom you just wrote the refund check. You’ll see the amount of the credit included in the Existing Credits field and the refund check at the bottom section of the window.
  3. Select the Apply Existing Credits check box.
  4. On the Refund Chk line, enter the check amount in the Payment column, then click OK.
  5. Choose Customers, then select Create Credit Memos/Refunds to display the credit memo you just entered and click Tx History. You should see the refund check listed in the Transaction History - Credit memo window.

 

That should do it. If there's anything else I can do for you, please don't hesitate to leave a comment below. I'll get back here as soon as I can to help you again.

pkwith
Level 3

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Thank you.

 

Very unintuitive but I was able to do it.

 

IMHO there has to be a more conspicuous way

 

Thank you for your help.

pkwith
Level 3

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

One more question.

 

If a customer owes $500 and I received a payment for $600 - when I click save it will show the customer has a $100 credit.

 

How do I refund this credit? The credit does not show up in the 'refunds and credits' section.

 

Thanks you for your attention

PreciousB
Moderator

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Thanks for coming back to QuickBooks Community, pkwith.


Since there’s already a $100 credit, you’ll want to create a refund check. Please make sure to leave Accounts Receivable as the account in the refund check. This ensures that QuickBooks will account for the credit and refund correctly.


Once done, connect the refund check to the credit memo. You can follow the steps above on how to write a refund check and how to connect the transactions.


Please keep me posted. I’ll be here if you have any questions about QuickBooks for Mac. Have a good one.

kellyconn
Level 2

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Creating the credit memo doubled the credit amount that was due to the customer.  If my customer overpaid, it already shows as a credit balance under Receive Payments. How do I issue a check payment to refund this overpayment, while clearing as a credit balance from the Receive Payments screen?

PreciousB
Moderator

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Thanks for joining this conversation, kellyconn.

 

Let me help you record a refund check for your customer.

 

Since there is already an existing credit, you can directly create a check for the customer.

 

Let me show you how:

  1. Choose Banking, then select Write Checks.
  2. To write a new check, click the “New Check...” on the left panel or click the + at the bottom of the list.
  3. Under the Expense column, make sure to select Accounts Receivable.
  4. Enter the information for the check, and click Save.

Next, connect the check and the overpayment amount by using the Receive Payment feature.

 

Here's how:

  1. Choose Customers, then select Receive Payments.
  2. Choose your desired customer whom you wrote the refund check. You'll see the amount of the credit included in the Existing Credits field and the refund check at the bottom section of the window.
  3. Select the Apply Existing Credits checkbox.
  4. Enter the amount in the Payment column, if not already entered by QuickBooks, then select OK

 

That should answer your question. If you have any questions or clarifications about QuickBooks, please leave a comment below. Have a good one.

Cohen Simon Accounting
Level 2

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

I need some guidance on issuing a credit memo and refunding a credit to a customer. I followed the instructions to create a Credit Memo - using QuickBooks Online Sample Company. But when I went to the step to open the Credit Memo and look for the Refund button at the top, the Refund status said PAID - despite the fact that it hadn't been paid. Why does it say PAID? Thanks.

Adrian_A
Moderator

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Hello there, Cohen Simon Accounting.

 

It could be that you're using a refund receipt upon applying the credit to your customer. This can be the reason why the status shows as paid, though you haven't pay it.

 

You'll have to remove the refund receipt and then create a check. After, link the check to your customer's credit memo.

 

Here's how:

  1. Click the Plus (+) icon, then Check.
  2. Choose a payee and the bank account.
  3. On the Category column, choose Accounts Receivable.
  4. Enter the Amount and the Description.
  5. Then, Save and close.

After, you'll have to create a credit memo.

  1. Go to the Plus (+) icon, then choose Credit Memo.
  2. Enter the donor's name.
  3. Select your customer's Products/Service as well as the Amount.
  4. Then, Save and close.

Then, you'll need to receive the payment.

  1. On the Plus (+) icon. select Receive Payment.
  2. Select your Donor.
  3. On the Description field, select the check you've created a while ago.
  4. Then, under Credits, choose the Credit Memo.
  5. Click Save and close.

 Let's verify if you've successfully applied the credit memo. Here's how:

  1. Go to the Sales tab, then choose Donors.
  2. Click the name of your customer.
  3. On the STATUS, it will show as Paid.

Let me know if you have other questions about applying a credit memo. Have a great day!

dshields2
Level 1

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

I tried following your example and I wind up with double the value in credit to the customer.  It's as though entering the overpayment creates it's own credit, then doing a credit memo creates a second credit.  Writing the check only clears out half of it and I still wind up with an unapplied amount equal to what the credit should be.  

Adrian_A
Moderator

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

I appreciate you for trying the step above, 28866178.

 

The steps above are for linking a credit memo and the customer's credit. If you want to record an overpayment, 

We can either make it as a refund or a credit. I'll show you how:

 

Here's how we can record it as a credit to their invoice:

 

If your customer has an existing invoice:

 

  1. Select + New.
  2. Select Receive payment or Receive invoice payment.
  3. Select the customer, then the credit, and the invoice.
  4. Select Save and New or Save and Close.

 

For a new invoice:

 

  1. Select + New.
  2. Select Invoice or Send Invoice.
  3. Create the invoice.
  4. Select + New. Then select Receive payment or Receive invoice payment.
  5. Select the credit and then Save and New or Save and Close.

 

If you want to refund your customer, you can check this article as your guide: Record a customer refund in QuickBooks Online.

 

I'm just around if there's anything that I can help. Take care!

mac2it
Level 4

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Actually if you enter in the overpayment amount in full and issue a credit memo you are ultimately doubling the overpayment as suggested by other posters as well. The correct answer is to write a check as detailed in this reply

ddm3
Level 1

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

Hello!

 

I do not have the option to select "Write checks" in the Banking section. Nor do I have an option to select "Refunds" when selecting Credits which was mentioned in another thread. 

 

I continue to double my customers credit. I have already paid my customer and the check is linking from the bank, but I have no way to link the check to my customer as it does not show. 

 

Why would I now have these options and how do I resolve this?

Thank you!

MJoy_D
Moderator

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

I can help you with writing a check, @ddm3.

 

Are you using QuickBooks Desktop (QBDT) or QuickBooks Online (QBO)? The steps that we're provided by PreciousB above is for QuickBooks Desktop. Here's a screenshot of where to find the Write Checks from the Banking menu: 

You can check this article for more information: Create, modify, and print checks. In case you don't have this option from your QBDT, you run the Verify and rebuild tools. The Verify Data will identify any data issues within your company file. Then, the Rebuild tool will self-resolve it. 

 

Verify data:

  1. Go to File, then Utilities and choose Verify Data.

If it will detect an error, proceed and Rebuild your data:

  1. Go back to File menu and then Utilities and select Rebuild Data.
  2. Choose OK if you’ll receive a message to back-up your company file.
  3. After creating the back-up file, the Rebuild Data utility will run automatically.
  4. Click OK when you get the message Rebuild has completed.

For detailed guidance, see this article: Verify and Rebuild Data in QuickBooks Desktop.

 

For more information on how to apply credits, check this article: Give your customer a credit or refund in QuickBooks Desktop for Windows.

 

You can leave a comment below if you need further assistance or help about your transactions. Take care and have a wonderful week!

Catslacker
Level 1

How do I process an overpayment of an invoice in QB Desktop 2019 for Mac?

I found all of the above answers not to be correct. I ended up with the same result as you...I doubled the credit amount.

 

What worked for me was very simple:

 

1.) START by writing the refund check to the customer

2.) Go to receive payments, enter the amount received from the customer 

       - the refund check should appear along with the customer invoice

       - check all boxes and save

3.) Verify

     - verify customer accounts receivable is correct

     - verify customer refund payment appears in bank account

     - verify incoming customer payment appears in bank account 

 

* You do not need to create a credit memo using this process (it will make it worse) 

        

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