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Level 1

Refund to Customer on Overpayment

I have a customer that overpaid an invoice and now have a credit on their account. They want us to send them a check for the credit. How can I do that with QuickBooks Online so that the credit is refunded from that customer's account?

Solved
Best answer August 12, 2020

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QuickBooks Team

Refund to Customer on Overpayment

Thank you for posting here on the Community page, @Beylee.

 

I'm here to guide you on how to record these transactions in QuickBooks Online (QBO).

 

First, you need to issue a check to your customer using the Accounts Receivable account for the overpayment amount. Then, create a payment and select the check recorded and the existing credits.

 

Here's how to enter the check:

 

  1. Open your QBO account, then select Check from the New (+) icon.
  2. Pick the customer's name under the Payee section.
  3. Under Category select Accounts Receivable, then enter the overpaid amount.
  4. Save the check.

 

Once completed, follow these steps to link the check and the unapplied amount.

 

  1. Open your customer's transaction list.
  2. Click on the drop-down arrow under New transaction and choose Payment
  3. On the Receive Payment window, select the check under the Outstanding Transactions section and the Unapplied Payment under the Credits.
  4. Hit Save and close.

 

You can also check this article for other tips on how to handle a customer credit or overpayment in QBO.

 

As always, feel free to open the topics from this link in case you need guides while working with QuickBooks in the future.

 

Mention my name in the comment section below if you have any other questions. I'm always here to help you out. Keep safe always!

View solution in original post

9 Comments
Highlighted
QuickBooks Team

Refund to Customer on Overpayment

Thank you for posting here on the Community page, @Beylee.

 

I'm here to guide you on how to record these transactions in QuickBooks Online (QBO).

 

First, you need to issue a check to your customer using the Accounts Receivable account for the overpayment amount. Then, create a payment and select the check recorded and the existing credits.

 

Here's how to enter the check:

 

  1. Open your QBO account, then select Check from the New (+) icon.
  2. Pick the customer's name under the Payee section.
  3. Under Category select Accounts Receivable, then enter the overpaid amount.
  4. Save the check.

 

Once completed, follow these steps to link the check and the unapplied amount.

 

  1. Open your customer's transaction list.
  2. Click on the drop-down arrow under New transaction and choose Payment
  3. On the Receive Payment window, select the check under the Outstanding Transactions section and the Unapplied Payment under the Credits.
  4. Hit Save and close.

 

You can also check this article for other tips on how to handle a customer credit or overpayment in QBO.

 

As always, feel free to open the topics from this link in case you need guides while working with QuickBooks in the future.

 

Mention my name in the comment section below if you have any other questions. I'm always here to help you out. Keep safe always!

View solution in original post

Highlighted
Level 1

Refund to Customer on Overpayment

Can I use this same method if I just issued a credit right to the customer's credit card? How do I record that in QB?

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QuickBooks Team

Refund to Customer on Overpayment

Thanks for joining the thread, @BonBon004.

 

Yes, you can follow the steps given by my colleague, @Angelyn_T to create a check and payment. Then, select the check recorded and the existing credits.

 

Once done, you can also follow the steps on how to link the check and the unapplied amount.

 

For more information, you can visit this link: Handle a customer credit or overpayment in QBO.

 

You can also take a look at here on how to void or refund customer payments in QuickBooks Online.

 

Feel free to drop a comment below if you have other questions. I'm always happy to help. Take care!

Highlighted
Level 1

Refund to Customer on Overpayment

I would like to print these instructions for future use.  

Great step by step with pics made this transactiion a breeze. 

Thank you for the help

DJ L

QuickBooks Team

Refund to Customer on Overpayment

Hi @loehrdrilling,

 

It's great to know that the steps shared on the article worked for you.

 

If you want to print an article in the Community, you need to press the 3 dots located on the upper-right side, then select Print. See the screenshot below for reference: 

 

 

I suggest you also view this page from time to time: The QuickBooks Blog. Each month, it lists new features and improvements so you can familiarize with them. 

 

You're always welcome to post a question here in the Community, in case you have other concerns. I'll be sure to get back to you. 

Highlighted
Level 1

Refund to Customer on Overpayment

What if customer used Online Payment options how do we refund overpayment (original invoice had sales tax in error)?   When I updated invoice it results in an overpayment we'd like to refund where it came from.

Highlighted
QuickBooks Team

Refund to Customer on Overpayment

Thanks for following this thread, @LizSnay. I'm here to share some steps on how to process a refund in QuickBooks Payments. 

 

First off, please ensure that the transaction is still within six months from the date of the sale. Otherwise, you can refund a customer manually by using cash or check. 

 

Sign in to your QuickBooks Payments account, then follow the steps below to process a refund: 

 

  1. Go to the Processing Tools drop-down, then select Reverse a Transaction.
  2. Enter all the necessary details in the fields and select Search.
  3. Select the transaction(s) you want to refund, then Submit.

 

Once done, you also need to record the refund for your customerin QuickBooks Online. Then, link the refund to the customer's credit. Follow steps 1 and 2 outlined in this help article: Record a customer refund in QuickBooks Online.

 

For future reference, read through this article: Void or refund transactions in QuickBooks Payments. It includes an alternate method to reverse or void a sale through QuickBooks Payments account. 

 

Visit again if you have additional concerns about this process. I'm always around here willing to help in any way I can. 

 

Highlighted
Level 1

Refund to Customer on Overpayment

Customer sent a check that was deposited, creating a overpayment.  We dont send check but ue ACH for payments.  How do we transfer the refund via ACH instead of a physical check?   

Highlighted
QuickBooks Team

Refund to Customer on Overpayment

Hey there, MerryK. 

 

Thanks for dropping by the Community this morning, I'm more than happy to help. If you want to refund your customer for the overpayment, you can follow these steps:

 

Step 1: Record the refund for your customer:

  1. Select  the + New button.
  2. Click ExpenseAdd expense or Check. Also, It's important that you're in  Accountant view when you complete these steps.
  3. Select the customer you want to refund from the Payee ▼ drop-down.
  4. From the Payment account ▼ click drop-down, select the bank account where the overpayment was deposited too.
  5. On the first line of the Category column, select an Accounts Receivable.
  6. Enter how much you want to refund in the Amount field.
  7. Fill out the rest of the field as desired, then select Save and close.

 

Step 2: Link the refund to the customer's credit or overpayment:

  1. Select + New again.
  2. Click Receive payment or Receive invoice payment.
  3. Select the same customer you used for the check or expense.
  4. Fill out the other fields as desired.
  5. Under the Outstanding Transaction section, click the checkbox for the Expense or Check that you created.
  6. Make sure the payment is equal to the open balance, then select Save and close.

And that's it. I'm providing a link below to the steps shown above as-well-as a tutorial video on the entire process. 

If you have any other questions or concerns, or need further assistance, please don't hesitate to reach out here. Thanks again and have a lovely day.

 

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