When you write a check or expense to record the refund, it will reduce your bank's balance and offsets the overpayment. Recording a refund to your customer with a check is quick and easy, and I'd be happy to show you how.
1. On the left pane, select the + New icon.
2. Select Check under Vendors column. 2. On the Category details section, enter/choose the following:
Accounts - Accounts Receivable.
Amount - Overpayment amount.
Customer - Customer's name.
3. Hit Save and close.
After that, link the refund with the overpayment by following the steps below:
Go back to the + New icon and pick Receive Payment under Customers column.
Choose the customer's name on the Customer field.
Select the check created on the Outstanding Transactions section and the Unapplied Payment on the Credits section.
Ensure that the Amount Received is zero, then hit Save and close.
For additional information, I've included an article for other options to enter a refund based on various scenarios: Record a customer refund.
Feel free to post again if you have any other questions. I'll be here in the Intuit Community to help. Have a great day ahead.