We received a duplicate payment from an insurance company for a customer, which we have to refund. All invoices/sales receipts are posted to the name of customer, and when I try to issue a refund check to the insurance company (a vendor) the customer's name populates & if I try to put the name of the insurance company in instead everything else zero's out. How do I correct this?
I think you misunderstood the issue. Probably 90%+ of all payments we receive are from a customers' insurance company (third party). In this particular instance the insurance company paid us twice for a subcontract bill, once with the rest of the charges & again on it's own.
Which means we need to refund the insurance company for the additional payment (which had already been deposited and a sales receipt was created before the duplication was discovered.)
I can initiate a credit memo for the duplication in the customer's "file", but when I go to issue the check QB automatically puts the customer's name & address on the check, if I try to correct it to the name of the insurance company QB doesn't apply it to the credit memo.
Since the check won't apply to the credit memo you've created, I suggest setting up a clearing the account. This way, you can move money from one account to another account. This account normally has a balance of $0.00 because you always take out the same amount that you put in.
1. Click the Lists menu and choose Charts of Accounts.
2. Click New from the Account drop-down list at the bottom.
3. From the Add New Account page, select Bank by clicking the radio button.
Below are the reason why you need to choose bank account:
You can pay into a bank account via Receive Payments or Make Deposits.
You can pay out of a bank account via Write Checks or Pay Bills.
A bank account appears on the balance sheet and on the statement of cash flows to balances and changes in balances.
To allocate expenses to overhead or class using a zero check, you must use a bank account as your Clearing account.
4. Click Continue.
5. From the Account Name field, enter Clearing Account.
6. Take note that do NOT enter an opening balance.
7. Hit Save and close.
Once done, you can now create a check to process the refund to the customer.