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How do I record double payment for one invoice and refund one of them?

A customer [Jane Doe] came in to pick up her job and paid with a credit card on receipt of product as it is our company policy, but she wanted her company [XYZ, Inc.] to pay. XYZ, Inc. sent the check in the mail, but the invoice was already paid is now showing as "Cleared". How do I receive payment of check from XYZ for a job trhat is already paid AND reimburse Jane Doe with a check? I do not want to make two invoices because then I would have to pay Sales Tax twice and we did not actually make that extra money anyways. Thanks!

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Best answer 12-10-2018

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EEV
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XYZ should of just paid Jane Doe. But this can be fixed....

XYZ should of just paid Jane Doe. But this can be fixed. (1) Deposit the check from the company using the account "Accounts Receivable".

(2) Write a check to Jane Doe, Use the account "Accounts Receivable". Under Customer:Job enter in the customer.

Next go into the customer, click on "Receive payments" and click on "Discounts and Credits" and apply the credit to the bill.

14 Comments
EEV
Not applicable

XYZ should of just paid Jane Doe. But this can be fixed....

XYZ should of just paid Jane Doe. But this can be fixed. (1) Deposit the check from the company using the account "Accounts Receivable".

(2) Write a check to Jane Doe, Use the account "Accounts Receivable". Under Customer:Job enter in the customer.

Next go into the customer, click on "Receive payments" and click on "Discounts and Credits" and apply the credit to the bill.

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This was a life saver. The part not mention in the QB Sup...

This was a life saver. The part not mention in the QB Support article was the deposit in the first step. Thank you!!
EEV
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Your welcome!

Your welcome!
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Do you go into receive payments or record deposits?  And...

Do you go into receive payments or record deposits?  And do you put in the customer's name because then it gets credited to their account which I don't want it to.  Need a few more instructions, please
Established Community Backer ***

Use Receive Payment for that check; do not apply it to an...

Use Receive Payment for that check; do not apply it to any open invoices. Bottom left is the radio button to Issue this refund, right from here.

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Yes, that would work, however, in this case, the customer...

Yes, that would work, however, in this case, the customer has an open balance with other invoices.  They are a realty company and because of the nature of the business, the other invoices will be paid and I can't apply this credit to them.  I need to "force" QB to issue a refund if I enter a payment but not apply it to any invoices.  Is this possible?
Established Community Backer ***

"When I enter a payment for that customer but do not chec...

"When I enter a payment for that customer but do not check any invoices to apply it to, there is no white box at the bottom that says refund it"

Did you enter an Amount, at the top part? Did you make sure nothing is applied (no checkmarks to the left)? Did you look at the icon in the ribbon (at the top)? If it offers Unapply, things are Applied. Click it to UnApply, and it changes to offering Auto-Apply.

"when I try to enter a manual deposit without putting in a customer's name and just use "Accounts Receivable" account, QB won't let me do that.  It says I have to put in a customer's name"

You never do this. A Deposit as AR = Receive Payment, not Deposit. And AR is already By Names, by definition. Name is Required, for AR and AP. Someone specifically owes; there is no Generic AR or AP.

Have you considered simply mailing back their Check? Sometimes the simple answer is the best.



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I thought you said in your paragraph that you don't have...

I thought you said in your paragraph that you don't have to even use receive.  You can enter a manual deposit and use the AR account.

Well, the realty company wants it paid from their trust account to us instead of the customer paying it, which they already did and the realty company didn't know they were going to pay it.

Yes an amount was entered, no invoices were checked, the ribbon does not say unapply.

Can I just do a journal entry?
Established Community Backer ***

"This is obviously an issue that many people have had a p...

"This is obviously an issue that many people have had a problem with, and yet it isn't being easily addressed by Intuit."

You can see it in my attached image, bottom left of your Payment screen.

"A different program I checked has a simple check box"

It's a Radio button.

"Why can't we get an easy method to handle this."

Handle "This" which part? Because you see to be complaining about things already provided for.

"This seems to come up at least once a month for my company and always involves customers who insist on paying us by invoice versus paying by statement."

There really is no "paying by statement." A statement simply is the Running balance and listing of the activities. Whether you send invoices and/or statements, all you are telling them is "Here is what you owe me" and they are paying their AR balance.

I send statements when the invoices are past due. It really doesn't matter that they "pay by statement vs invoice" because the point is, you want them to Pay. It isn't clear how this is a problem for you. If people pay what they ow, I would never send back their check.

"If I seem frustrated I am, because I have been trying to find a better solution than the multiple step process above that I have to try to remember."

It isn't clear which parts you think apply to your needs. It isn't complex.

"There are so many different answers on here and they usually forget to tell people how to handle the deposit.  One said to do a Journal Entry.  You are never supposed to do a Journal Entry for a problem such as this"

And there is no Reason to make a JE, either.

For instance, in my other attachment, you can see where you use Receive Payment for the Customer name, to apply to all open Job invoices. I would never return a check if they owe me.


Established Community Backer ***

@plumberdon53 "You can enter a manual deposit and use th...

@plumberdon53

"You can enter a manual deposit and use the AR account."

Not AR, but OTHER CURRENT ASSET type.

"Can I just do a journal entry?"

You almost never use a JE in QB; not for Banking; never for AP and AR, not for QB inventory, sales, sales taxes, or QB Payroll. You just bypassed Cash vs Accrual Basis. Never for where Names are involved.

"Well, the realty company wants it paid from their trust account to us instead of the customer paying it, which they already did and the realty company didn't know they were going to pay it."

You don't care where it gets paid from. You would apply it to what is owed, whether it is paid from Trust or an Insurance company or the customer directly, because that is all the same to you.

And you can simply Mail Back a check sent to you, or agree they will void it and you will shred it.

Not applicable

This is obviously an issue that many people have had a pr...

This is obviously an issue that many people have had a problem with, and yet it isn't being easily addressed by Intuit.  A different program I checked has a simple check box that you select on the payment screen and you don't have to try to remember all of those steps above.  This is supposed to be easy (QuickBooks), that is what we paid a ton of money for.  We get large checks that are paying multiple invoices and if you send the entire check back, we are out thousands of dollars why we are waiting to be issued a new check (Which can take an extra month or two for larger companies), so of course the easy answer is to send the check back and ask for a new one, but this is real world.  Why can't we get an easy method to handle this.  This seems to come up at least once a month for my company and always involves customers who insist on paying us by invoice versus paying by statement.  If I seem frustrated I am, because I have been trying to find a better solution than the multiple step process above that I have to try to remember.  There are so many different answers on here and they usually forget to tell people how to handle the deposit.  One said to do a Journal Entry.  You are never supposed to do a Journal Entry for a problem such as this.
Established Community Backer ***

"Yes, that would work, however, in this case, the custome...

"Yes, that would work, however, in this case, the customer has an open balance with other invoices."

That doesn't matter; the point is not to apply it to anything so that bottom Left shows the white box for "Refund it."

"They are a realty company and because of the nature of the business, the other invoices will be paid"

What does that mean, "Will Be Paid?" You control What gets paid and how the funds get applied, or do not get applied. And in the payment screen, if you made an error, you Edit that payment screen and Click on the checkmarks to remove it, or at the top use the Unapply icon.  In the right, you see Unshaded columns; all through QB, unshaded = you Enter values here, to specifically allocate amounts, manually.

"and I can't apply this credit to them."

The point of this topic is to Not Apply it at all.

And you don't even have to use Receive. Manually enter this as a deposit to an Other Current Asset account and then Write the check to the customer paying out the Other Current Asset account. The only reason to use Receive Payment and issue the refund from there, is because you do want to see it as part of Customer activities. Do not put a Name on the Manual deposit entry to Other Current Asset at all. You don't see Deposits in Customer Center.

Please see my attachments.

"I need to "force" QB to issue a refund if I enter a payment but not apply it to any invoices.  Is this possible?"

Yes, I have covered All of this. Look around at the various option the Receive Payment screen; you seem to be overlooking all of your ways to control this. And in Preferences, you set if payments are applied automatically or not, but even with that setting, you still take manual control. That setting reduces the keystrokes you use under Normal conditions.


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When I enter a payment for that customer but do not check...

When I enter a payment for that customer but do not check any invoices to apply it to, there is no white box at the bottom that says refund it
Not applicable

Also, when I try to enter a manual deposit without puttin...

Also, when I try to enter a manual deposit without putting in a customer's name and just use "Accounts Receivable" account, QB won't let me do that.  It says I have to put in a customer's name

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