Client overpaid invoice, how do I post?

francesb · ‎January 18, 2022

Carneil_C · ‎January 19, 2022

Thanks for getting back to us, @francesb. I'd be delighted to assist you in handling your customers overpayment in QuickBooks Online.

We can turn off the Automatically apply credits feature in QuickBooks to stop it from automatically applying unused credits to invoices.

Here’s how:

Click the Gear icon and choose Accounts and Settings.
Click the Automation section.
Disable Automatically apply credits. You can click the encircled question mark to see more details about the feature.
Click Save and click Done.

From there, you can record the payment as is, and it will be saved as a credit that you can apply to a future invoice from your customer.

Here's how:

Click the + New icon.
Select Receive Payment.
From the Customer dropdown, locate the name of your customer.
Under the Outstanding Transactions section, checkmark the invoice you want to pay.
In the Amount received field, enter the exact amount you received from your customer.
Once done, hit Save and close.

For further information on dealing with a customer credit or overpayment, see this article:: Handle a customer credit or overpayment in QuickBooks Online.

If you download your bank transactions through online banking, you may categorize and match them to make sure they go into the right account.

Do you have any more concerns about overpayment? You are free to include them in your reply. I'll get back to you as soon as possible.

View solution in original post

Maybelle_S · ‎January 18, 2022

Hello there, @francesb.

When you receive an overpayment on a customer's account, you'll have to use the Receive payment option to enter the actual amount paid for the invoice. Then, choose to either do a refund or keep it as a credit (only if you've set up customer credits to apply to future payments by default). You can refer to this article to learn more about this: Handle a customer credit or overpayment in QuickBooks Online.

Once you're done, deposit the payment (from the Undeposited Funds account) using the Bank deposit feature. This way, you're able to deposit the funds or the received payment in the bank. Here's how:

1. Go to the + New button.

2. Select Bank deposit.

3. From the Account dropdown, choose the account you want to put the money into.

4. Click the checkbox for the payment you've received.

5. Select Save and close or Save and new.

Then, once the payment is downloaded, match it to the existing entry in QuickBooks to keep your account updated. For the step-by-step guide, you can refer to this article: Categorize online bank transactions in QuickBooks Online.

Additionally, I'd recommend reconciling your accounts every month. This will help you monitor your income/expenses and detect any possible errors accordingly. You can check out this article for the detailed steps: Reconcile an account in QuickBooks Online.

Please don't hesitate to let me know if you have other concerns about managing invoices and payments in QBO. You can drop a comment below, and I'll gladly help. Take care, and I wish you continued success, @francesb.

francesb · ‎January 19, 2022

Thank you for your reply Maybelle.

Payment was done by a paper check, not electronic.

I would like to post the amount given, select an invoice(s) and leave any overpayment as a credit to be used later.

Carneil_C · ‎January 19, 2022

Thanks for getting back to us, @francesb. I'd be delighted to assist you in handling your customers overpayment in QuickBooks Online.

We can turn off the Automatically apply credits feature in QuickBooks to stop it from automatically applying unused credits to invoices.

Here’s how:

Click the Gear icon and choose Accounts and Settings.
Click the Automation section.
Disable Automatically apply credits. You can click the encircled question mark to see more details about the feature.
Click Save and click Done.

From there, you can record the payment as is, and it will be saved as a credit that you can apply to a future invoice from your customer.

Here's how:

Click the + New icon.
Select Receive Payment.
From the Customer dropdown, locate the name of your customer.
Under the Outstanding Transactions section, checkmark the invoice you want to pay.
In the Amount received field, enter the exact amount you received from your customer.
Once done, hit Save and close.

For further information on dealing with a customer credit or overpayment, see this article:: Handle a customer credit or overpayment in QuickBooks Online.

If you download your bank transactions through online banking, you may categorize and match them to make sure they go into the right account.

Do you have any more concerns about overpayment? You are free to include them in your reply. I'll get back to you as soon as possible.

francesb · ‎January 21, 2022

Thank you! Exactly what I was looking for! You rock, Carneil!

Carneil_C · ‎January 21, 2022

You're most welcome, @francesb.

I'm happy to provide insights to get you going. Our goal here is to make sure you can record your client’s overpayment in QuickBooks Online.

Feel free to get back to this thread if you have more concerns about your transactions in QBO. We're around to back you up always. Have a great day ahead!

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Client overpaid invoice, how do I post?