How does one write a check to a customer for an overpayment on their account?

Let's get your customer's overpayment refunded in QuickBooks Online (QBO), Nancy.

Since you've created a credit memo to correct the error on the invoice and reflect the accurate amount owed, we can make a check under Accounts Receivable to repay the customer. It's to adjust both balances accordingly.

You can record a refund to your customer using Check or Expense if:

• They want to redeem their open credits.
• They made a prepayment for an order but canceled it before receiving the goods or services.
• They want you to reimburse an accidental overpayment.

Here's how:

1. Go to the +New button.
2. Under Vendors, select Check.
3. Select the customer you want to refund from the Payee drop-down arrow.
4. From the Bank Account drop-down menu, choose the bank where you deposited the overpayment.
5. On the first line of the Category column, select Accounts Receivable.
6. Enter how much you want to refund in the Amount field.
7. Fill out the other fields, then hit Save and Close.

After that, link the refund to the customer's overpayment. I'll guide you on how to do it.

1. Go to the +New button.
2. Under Customers, select Receive payment.
3. Choose the same customer you used for the check when recording the refund.
4. Fill out the other fields.
5. In the Outstanding Transaction section, select the checkbox for the check you created when recording the refund.
6. Make sure the payment is the same as the open balance.
7. Tap Save and Close.

For more details, see this link: Record a customer refund.

You can go over these references to learn more about managing your income and other sales-related transactions:

• Invoices and payments
• Sales and customers

Return this post if you have other questions about handling customer overpayment. I'll get back to respond to them.