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kw1234
Level 1

Refund Receipt

An invoice was charged to the wrong customers credit card. I clicked on the payment and unchecked the invoice and then changed the invoice to have the correct customers name (moving the invoice to the correct customers account) and refunded the payment using a refund receipt. Now, the customer that was incorrectly charged has a credit balance because the payment shows up as unapplied even though I issued a refund receipt for it. How do I fix this?

3 Comments 3
HoneyLynn_G
QuickBooks Team

Refund Receipt

Hi there, @kw1234.

 

Thanks for giving me the opportunity to help you today. I can help you fix the payment applied to the wrong customer invoice.

 

You have the options either to create journal entry or apply the payment to the correct invoice. 

 

These are the steps in creating a journal entry:

  1. Click the Plus icon.
  2. Choose Journal Entry.
  3. On the first line, complete the following:
    Account: Accounts Receivable
    Debits: Amount of payment to transfer
    Name: Name of the customer you’re transferring payment from
  4. On the second line:
    Account: Accounts Receivable
    Credits: Amount of payment to transfer
    Name: Name of the customer you’re transferring payment to
  5. Select Save and close. 

 

The other option is to apply the payment to the correct invoice:

  1. Click the Plus icon.
  2. Choose Receive Payment.
  3. Select the name of the customer.
  4. In the Credits section, make sure the journal entry # and open balance amount are listed and checked.
  5. Select Save and close.

 

You can refer to this article for more details: How to fix a payment applied to the wrong customer invoice.

 

I'm confident that this information will keep you going today. Just add a comment below if there's anything else you need. Have a wonderful day.

kw1234
Level 1

Refund Receipt

The issue is that a customer was invoiced and charged for something that they shouldn't have been invoiced for at all. So I issued them a refund receipt, but now they have a credit balance because of the "unapplied" payment. The top line on their account says Refund -$600 and when you scroll down to when the payment was made it says Payment -$600 Unapplied, so they have a -$600 balance 

FritzF
Moderator

Refund Receipt

Greetings, @kw1234.

 

Thanks for reaching out to us here in the Community. Allow me to step in for a moment and provide some additional steps on how to fix the payment applied to the wrong customer invoice in QuickBooks Online (QBO).

 

If you haven't received an actual payment from the wrong customer, you can delete Unapplied Payment to clear them out on your customer account. Here's how:

 

1. Go to the Sales menu at the left panel, then Customers.
2. Click the name of the customer.
3. Open the Unapplied Payment, then choose Clear Payment on the lower right.
4. Select Save and close.

 

I also attached some sample screenshot for your reference.

 

 

 

 

That should clear out the Unapplied Payment on your customer account.

 

Please let me know how it goes or if you're referring to something else. I'd be glad to answer should you have any follow-up questions. I'll be here to help you out. Take care always!

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