Process 3rd party overpayment

patrick3 · ‎June 07, 2021

We just bought a property last month that has 2 tenants for which the previous owner received advance rent payments after we closed. So she wrote a check to us for each of them.

For the first one, I created future invoices and applied her check to them as payment.

But for the second one, she accidentally wrote the check for $1,575 instead of $1,050, meaning I need to refund $525 to her. I do not want to apply her full payment to the tenant's account because I don't want it to show up later in his transaction history as a credit and then some sort of payment/reversal that will have to be explained and potentially contested. But I can't just split the payment and apply part of it to his account because the full amount will need to be reconciled on my bank statement later.

So how do I handle this situation in QBO?

MirriamM · ‎June 07, 2021

Hello there, @patrick3.

Thanks for reaching out and providing detailed information about your concern.

In your case, you can create a deposit for the check you received amounted to $1,575. Then, split the amount into two lines. The first one would be $1,050 for Accounts Receivable, and the second line is $525 for Accounts Payable account.

To create a deposit here's how:

In the left menu, click the + New button.
Select Bank deposit.
From the Account ▼ dropdown, choose the account you want to put the money into.
Go to the Add funds to this deposit section.
On the first line, select the Accounts Receivable account and enter the amount of $1,050.
On the second line, select the Accounts Payable account and enter the amount of $525.
Enter the other necessary information.
Select Save and close.

For more details about creating a bank deposit, see the below articles:

You may also find the below articles helpful in the future:

Let me know if you have any other questions, I'm here to help. Have a wonderful day!

View solution in original post

MirriamM · ‎June 07, 2021

Hello there, @patrick3.

Thanks for reaching out and providing detailed information about your concern.

In your case, you can create a deposit for the check you received amounted to $1,575. Then, split the amount into two lines. The first one would be $1,050 for Accounts Receivable, and the second line is $525 for Accounts Payable account.

To create a deposit here's how:

In the left menu, click the + New button.
Select Bank deposit.
From the Account ▼ dropdown, choose the account you want to put the money into.
Go to the Add funds to this deposit section.
On the first line, select the Accounts Receivable account and enter the amount of $1,050.
On the second line, select the Accounts Payable account and enter the amount of $525.
Enter the other necessary information.
Select Save and close.

For more details about creating a bank deposit, see the below articles:

You may also find the below articles helpful in the future:

Let me know if you have any other questions, I'm here to help. Have a wonderful day!

patrick3 · ‎June 10, 2021

Thank you. That was helpful for getting the payment applied to the correct account. But it just shows up in the tenant's account as a deposit without being applied to the invoices. Instead of showing 3 months paid, it shows him as having a $0 balance, but $350 (June rent) overdue.

patrick3 · ‎June 10, 2021

Nevermind. I figured it out. I had to go into one of the invoices and click Receive Payment. Then it applied the deposit amount to the 3 invoices and they all now show as being Paid.

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Process 3rd party overpayment