Overpayment of Invoice

Hi Lboll,

Thank you for posting here in the Community. I'm here to help you apply the overpayment to the invoice in QuickBooks Online.

Yes, you can delete the GSy project, but I recommend transferring the $10 overpayment first to the correct project before performing the process. After that, you can remove the existing payment to apply the credit.

Here's how:

1. Open your GSy project.
2. View the $10 overpayment.
3. Change the customer name to GS.
4. Hit Save and close.
5. Delete the GSy project.
6. Open your GS project.
7. Delete the payment linked to your invoice.
8. Press the Receive payment option again.
9. Choose the credit, then hit Save and close.
10. View your transactions.

Also, we have tools to create personalized and professional-looking invoices, estimates, and sales receipts. I've included a link you can check out for additional guidance in QuickBooks Online: Customize invoices, estimates, and sales receipts in QuickBooks Online.

Drop me a comment below if you have any other questions about handling overpayments or applying credits. We'll be happy to help you some more. Keep safe always.

Thank you for your response!  The overpayment of $10 was classified as a Deposit when QB Online created the new project (not as a Payment, as in your example).    So while the company paid the original amount of the invoice plus $10, QB applied the original amount to the invoice and the $10 overpayment as a Deposit.

Therefore, when I tried your method: 1. I can open the overpayment of $10 (which is a Deposit) and change the customer to GS.  But when I open GS, I can't do step 7 or 8 as there is no payment to delete.  Does this make sense?

I appreciate you for performing the steps shared by our colleague, Lboll. I'm here to share details about applying overpayment to your invoices.

Since the original invoice has already been paid and fulfilled, we don't need to apply the overpayment to that actual transaction. Hence, we can use it for your future invoices.

Beforehand, let's ensure the deposit is under Accounts Receivable so it will appear when applying it to an open transaction. Here's how:

1. Go to the Projects menu.
2. Select the GS project, then go to Transactions.
3. Open the deposit you move from GSy.
   
   
4. Under Add funds to this deposit, change the Account to Accounts Receivable.
5. Click Save and close.
   
   

Once ready, please follow Step 1 in this article: Handle a Customer Credit or Overpayment in QuickBooks Online.

If you want to return the overpayment to your customer, record a refund in the program.

Alternatively, you can also track the $10 as a tip.

Additionally, you can run the Project profitability report in the program. Doing so helps you check how much you're earning. I'll show you how:

1. Go to the Projects menu.
2. Select the GS project, then choose the Project Reports.
3. Click View beside Project profitability.
4. Choose Customize to personalize the details on the report.
5. Then, click Run report.
   
   

Please keep us posted if you need additional assistance managing your sales transactions or projects. Our goal is to ensure your record is accurate.

Thank you! This was very helpful. The deposit is now under Accounts Receivable.

I followed the article you linked.   For this situation, I need option 1: Apply the credit to an invoice

1. Select + New.
2. Select Receive payment.
3. Select the customer, then the credit and the invoice *
4. Select another pending invoice and enter the overpayment amount in its Payment column.
5. Select Save and new or Save and close.

* On step 3, I was able to select the customer and the credit, but not the original invoice that was overpaid.  The only invoice showing is a pending invoice, which I will be using in Step 4 to apply the overpayment.   How do I link the original invoice to this transaction, or is it necessary?  

Thank you for your response! It was very helpful.  The deposit is now under Accounts Receivable.  

I followed the article you linked. Based on my situation, I need to do Option 1: Apply the credit to an invoice.

1. Select + New.
2. Select Receive payment.
3. Select the customer, then the credit and the invoice. **
4. Select another pending invoice and enter the overpayment amount in its Payment column.
5. Select Save and new or Save and close.

On Step 3, I was able to select the customer and the credit, but not the original invoice. The only invoice showing is a pending invoice, which I will need for Step 4 when applying the overpayment.   How do I link the original invoice to this transaction, or is it necessary to?

Thank you again for all of your help!