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A customer paid an invoice that included prepayment for future services. The future services are cancelled. QB won't let me do an invoice w a credit. What do I do?

 
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A customer paid an invoice that included prepayment for future services. The future services are cancelled. QB won't let me do an invoice w a credit. What do I do?

Welcome to the QuickBooks family, @stephaniej1.

 

I can show you how to handle customer overpayment for future services in QuickBooks Online. The way you record them in the system will depend on how it happens in the actual scenario.

 

It's only advisable to apply a credit if they want to continue and use the overpayment to the future invoices. Since the customer canceled the prepayment, you can use Check or Expense to record the refund.

 

Here's how:

 

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

Once done, you can then link the refund by receiving payment. For the detailed instructions, I suggest visiting the Record a customer refund in QuickBooks Online article.

 

I've also included an extra article in case you need some ideas about when to use credit memos and how to apply them: Enter and apply credit memos and delayed credits in QuickBooks Online.

 

I'm only a few clicks away if you have any other questions. Wishing you and your business continued success.

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