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u00axe6
Level 1

How record a customer overpayment from a customer not linked to a service and asking for a check refund

Deposited check from customer, with no invoice open or pending
Customer requested refund  (check) instead of credit
3 Comments 3
Kurt_M
QuickBooks Team

How record a customer overpayment from a customer not linked to a service and asking for a check refund

I'm thrilled to have you here today, @u00axe6.

 

In QBO, you can record a refund to your customer using a Check if they want you to reimburse an accidental overpayment. Also, please know that using a Check to handle a refund reduces your bank's balance and offsets the customer's open credit, overpayment, or prepayment.  To get you going, here's how:

 

  1. Access your QuickBooks Online company.
  2. On the left navigational bar, click the + New.
  3. Select Check. If you're in Business view, follow the steps to switch to Accountant view first. Then come back to these steps.
  4. Choose the customer you want to refund from the Payee ▼ dropdown.
  5. From the Payment account ▼ dropdown, select the bank account where you deposited the overpayment to.
  6. On the first line of the Category column, select Accounts Receivable.
  7. Enter how much you want to refund in the Amount field.
  8. Fill out the other fields as you see fit, then select Save and close.

 

For further guidelines, feel free to check this article: Record a customer refund in QuickBooks Online.

 

Additionally, I've got you this handy article to help you ensure data inside your company stays accurate: Run reports in QuickBooks Online.

 

@u00axe6, thanks for dropping by today. Feel free to post here again if you have any additional QuickBooks-related concern. I'll be here, ready to help you. Take care!

RBLoom
Level 2

How record a customer overpayment from a customer not linked to a service and asking for a check refund

Thank you for the help on this matter. I have exactly the same scenario. No open invoices for the cust but they sent payment anyway. Checks were deposited into our biz account and now I need to refund cust. 

 

When I follow the steps above, it deducts the amount from the customer showing they owe us money. So, obviously I am missing a sequence of steps to do before the refund process. Do I simply Receive Payment in the customer profile and then issue the refund?

SarahannC
Moderator

How record a customer overpayment from a customer not linked to a service and asking for a check refund

Thanks for following the instructions provided by my colleague, RBLoom. You're too close to record your customer's refund appropriately.

 

Yes, you're correct. To complete the procedure, you will need to make use of the Receive Payment feature. This will help you offset your customer's payment. Here's how:

 

  1. Go to the +New button.
  2. Select Receive Payment.
  3. In the Customer field, select the customer name you used when creating the expense/check.
  4. The refund transaction will automatically generate under the Outstanding Transaction section. Put a checkmark and review the amount. 
  5. In the Deposited To field, select the appropriate account.
  6. Make sure the payment is equal to the open balance. Then, hit Save and close.


If you want to double-check the open balance, you can go to the customer profile/transaction. Here's how you could do it:

 

  1. Go to the Sales menu.
  2. In the Customers tab, click the customer's name.
  3. The open balance and total amount should be zero. Here's a screenshot for additional reference:

 

Know that I am here to support you every step of the way. Don't hesitate to reach out to me if you have any further questions or concerns. Together, we can ensure that you are able to effectively manage your books and feel confident in using our platform. 

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