Received payment for wrong customer invoice, it accidentally got refunded when I voided the initial payment.

Joining you here to help you resolve the situation with customer payments and refunds., Proworksinc.

Indeed, it's accurate that a journal entry ought to have been logged when a payment is allocated to an incorrect invoice. Not to worry, I'll provide you with all the necessary details and references to make sure we sort this out.

First, QuickBooks Payments will automatically initiate a refund to the original card if a payment is voided in the system. You can read more details about this here: Void or Refund Customer Payments in QuickBooks Online.

Second, you can unlink the payment from customer A's invoice to make it open again. Here's how:

1. Open the transaction.
2. Click the 1 payment made link just below the PAID status, then select the date of the payment.
3. Scroll-down to the Outstanding Transactions section, then uncheck the invoice.
4. Click Save and close. 
    

Third, match the payment that was processed via Zelle once it's downloaded in the Online Banking section. Here's an article as a guide: Categorize Online Bank Transactions in QuickBooks Online.

Lastly, retain both the refund receipt (outgoing funds) and the initial payment (incoming funds) in the customer's record, allowing them to offset one another. Additionally, I suggest getting in touch with your accountant for further guidance on this issue.

For additional guidance, allow me to share these articles as well:

• Find Out When QuickBooks Payments Deposits Customer Payments
• Change the Deposit Bank Account for QuickBooks Payments

The Community is constantly available should you have any additional inquiries for us. Our commitment remains steadfast in ensuring that all matters are properly addressed.

Ok but then my bank deposit, where the funds did process will be off $1000.  If I remove it on that date as you suggest.  Do I do an "add funds to this deposit" the bottom section?  and If so how would I categorize that?

It says this...Are you sure you want to change the amount? It will be different from the matching downloaded transaction: $4,629.05 credit from ORIG CO NAME:INTUIT XXXXXXXX ORIG ID:XXXXXXXXXX DESC DATE:XXXXXX CO ENTRY DESCR:DEPOSIT SEC:CCD TRACE#:XXXXXXXXXXXXXXX EED:XXXXXX IND ID:XXXXXXXXXXX0084 IND NAM on 08/01/2023

This can cause differences between your bank and QuickBooks balances.

Do you want to continue?

OK... Correction, I was able to do as you said. And was able to match the new zelle payments. But now It is showing on the customer that they have a $1000 balance on their account.

How do I match the refund receipt to the unapplied payment that is just sitting there now?

Thanks for getting back in here, @Proworksinc.

I understand your concern about ensuring the accuracy of your bank deposit. It's indeed relevant to maintain a precise record of your financial transactions.

To address this, you can utilize the "add funds to this deposit" feature in the bottom section. Then, the account should be set as Accounts Receivable (AR) so that they can apply it to the specific invoice they want. You also need to create this bank deposit affecting the AR account to match this to the Zelle payment. For detailed steps, you may check out this article: Record and make bank deposits in QuickBooks Online.

Once done, you can link it to the invoice using the receive payment feature. For your guidance, you can check out this link: Record invoice payments in QuickBooks Online.

Furthermore, in the case where you have customers' outstanding balances preceding the commencement of your QuickBooks Online account, it is advisable to keep the opening balance field empty. Instead, include the unpaid invoices from your customers or the outstanding bills from your vendors within QuickBooks. This practice ensures transparent documentation of the nature of your customers' payments and the rationale behind your payments to vendors: Manage outstanding balances for customers and vendors in QuickBooks Online.

Regarding matching refund receipt to the unapplied payment, this process isn't possible in QBO. As a workaround, we can create a check affecting AR. 

1. Navigate to + New, then select Check.
2. From the Payee ▼ dropdown, choose who you want to address the check too.
3. From the Bank Account ▼ dropdown, select the account you want the money to come from.
4. Fill out the rest of the fields accordingly.
5. Note: If you need to reuse a check number, uncheck the Print later checkbox. 
6. Lastly, click Save and close.

Once done, we can link the check and unapplied payment using receive payment. 

I'm also sharing this link to help refund a customer in QuickBooks Online: Record a customer refund in QBO.

Feel at ease to let me know if you have follow-up questions. I'm here to ensure that your financial records remain accurate and aligned.