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Join nowLet me guide you on how to create and print a credit memo, @abainter-ancient.
You can delete the original payment transaction and then create a new one with the exact amount. After that, you can generate a credit memo to account for the remaining overpaid balance. Alternatively, you can print and send customer statements. This will allow them to view their credit balance.
If you'd like to delete the original payment transactions, let's try recording the receive payment with the exact amount from customer.
Here's how:
Then, you can create a new credit memo for the remaining balance. Here's how:
Learn more about handling your customer credit memo here: Handle a customer credit or overpayment in QuickBooks Online.
I'm adding these articles if you wish to refund and record your customer in the future:
Let me know in the comment below if you have further questions about managing your customers' transactions. Keep safe!
Obviously, @ShyMae 's advice will not work since you don't want to delete the payment received.
This is another function that is lacking in QB Online that QB Desktop made so easy. In QBO, the overpayment is sitting as a credit to A/R. When you create a credit memo, it credits A/R just as your overpayment did. So, we need to close out the overpayment that you received that is currently sitting as a credit to A/R and then create a credit memo.
The first thing to do is to create bank account in QBO called "Clearing Account". Next, create a service product called "Customer Overpayment" and select the bank Clearing Account under the Income account drop-down menu. Then, create a journal entry: debit A/R (select the customer's name under NAME) and credit the newly-created bank Clearing Account. Now, go to Receive payment and select your customer. You should see the journal entry and the overpayment from your customer. Apply the overpayment to the journal entry. Finally, create a credit memo and select the Customer Overpayment service item for the amount of the overpayment. You now have a $2,000 credit memo for the customer that can be applied to a future invoice and the Clearing Account is zero.
Did I mention how much easier this was in QB Desktop?
@Rainflurry this worked perfectly. Thank you for posting!
@Rainflurry this worked perfectly. Thank you for taking the time to post!
I have the credit memo but need to send a check back to the customer. How does it get cleared from QB?
Let's make sure to clear the customer's overpayment, justwhenithinkigotit.
You can create a check to reduce your banks' balance and offsets the customer's overpayments. To do so, follow the steps outlined below:
Once done, you can receive payment to link the credit memo and check and clear the customer's credit. Here's how:
Moreover, you can run reports, so you'll be able check accurate details of your data. You'll only have to ensure to customise them so right data shows up. I've got this article for more details: Customize Reports In QuickBooks Online.
Let me know if ever you have further questions about overpayment. I'll be right here in case you need help.
How is this done in QB Desktop?
How do you do this in QB Desktop 2021?
Thanks for joining this thread, kellyp77.
I'm here to lend a hand with your QuickBooks account.
Just to make sure I'm on the same page, are you looking to create a credit memo or create a check to reduce the balance in QuickBooks Desktop?
Please let me know so I can get back to you with the steps. I'll keep an eye out for your reply.
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