A customer overpaid an invoice, so we credited their credit card and issued a refund receipt in QB but the credit still shows as open on the customers account.

Hi there, @psalm33-9.

Can you share with me the steps you've taken to record your customer's overpayment in QuickBooks? The balance in your customer's accounts depends on how you record their transactions in the program.

That said, I'll share with you the right steps on how to record this transaction in QuickBooks. Here's how:

Step 1: Record the refund for your customer

1. Click + New and select Expense. 
2. Choose the customer you want to refund from the Payee ▼ drop-down list.
3. From the Payment account ▼ drop-down menu, select the bank account where you deposited the overpayment to.
4. On the first line of the Category column, choose Accounts Receivable.
5. Enter how much you want to refund in the Amount field.
6. Fill out the other fields as you see fit, then select Save and close.

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

1. Select + New and click Receive payment.
2. Choose the same customer you used for the check or expense when recording the refund.
3. Fill out the other fields as you see fit.
4. Under the Outstanding Transaction section, select the checkbox for the Expense or Check you created when recording the refund.
5. Make sure the payment is equal to the open balance, then click Save and close.
    

You can follow these steps and delete the transactions when recording the first overpayment. That way, you can zero out your customer's balance in QuickBooks. 

For more info, please check out this article: Record a customer refund in QuickBooks Online.

In case you have follow-up questions about tracking a customer's refund in QuickBooks, please let me know. I'm always here to help. Have a good one.

Hi @psalm33-9,

Hope you’re doing great. I wanted to see how everything is going about the overpaid invoice concern you had yesterday. Was it resolved?

Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!

I have a similar situation.  We use another software, Housecall Pro, to do all of our scheduling, invoicing, etc.  When an overpayment is made in Housecall, it shows a credit on the customer page.  When we refund the customer in HC via their credit card, HC sends to QB Online a refund receipt.  But this creates an open balance on the customer page.  Should I delete the refund receipt and go thru the steps you outlined for this person?

Welcome to the Community space, Glenda. I'd gladly assist you in recording refunds in your QuickBooks Online account.

Given the integration of HouseCall Pro (HC) with QuickBooks Online (QBO), the refund receipts transmitted from HC to QBO may not align with the precise recording of the refund.

Deleting the Refund Receipt and then following the steps outlined by my colleague above for recording the refund and linking it to the customer's credit or overpayment in QuickBooks Online can resolve the open balance issue.

Please ensure you review the refund and integration details between HouseCall Pro and QuickBooks Online to verify the impact of deleting refund receipts and correctly handle the customer's overpayment according to your specific situation.

Furthermore, you can learn how to create and apply credit memos or delayed credits in QuickBooks Online. Instead of a refund, some customers prefer getting a credit they can use to reduce the balance on their next purchase.

If you need further assistance in recording refunds, feel free to leave a reply. I'm always here to help.