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Level 1

How to record if customer wrongly paid twice for the same invoice & I have to refund?

Scenario:

A customer paid me wrongly twice via PayPal & then I have refunded him using PayPal.

What I have done:

I have first recorded the 2nd payment from Quick icon button as receive payment by referring to that client.

Then, I have also recorded the refund using the refund receipts. 

Problems:

Customer balance still shows that there is a customer account in negative balance meaning I owe to customer & reason for that 2nd payment I have record is showing applied.
Mistake-
I have recorded the 2nd payment from the receive payment but in order to refund him,d I used refund receipts.
1st one has the double entry of Bank Dr & Accounts receivables Cr (Customer account) 
2nd one has the double entry of Sales Dr & Bank Cr.

It would be better if anyone tells me how to record if customer wrongly paid twice & I have to refund him.


 

5 Comments
Moderator

How to record if customer wrongly paid twice for the same invoice & I have to refund?

I know what to do to fix this, Rafi Wasir.

You can record a new payment using the Receive Payment option, and then link the second one to the refund. This will zero out the negative balance that's showing in your customer's profile.

Here's how:

  1. Click the Plus icon.
  2. Under Customers, select Receive Payment.
  3. Enter the customer's name.
  4. Under the Outstanding Transactions list, check the boxes for the payment and refund.
  5. Click Save & close.

I'll be here if you have any follow-up questions on this.

Level 1

How to record if customer wrongly paid twice for the same invoice & I have to refund?

Hi I have a similar situation.

Customer paid twice for the same invoice by Direct Payment. Since it was a deposit in January, and I had to reconcile the bank statement, I created another invoice for the same period (basically a duplicate invoice for the same item), and applied the payment to that invoice. Now they want us to write a cheque to refund them the duplicate payment. How do I do that?

Thank you.

Moderator

How to record if customer wrongly paid twice for the same invoice & I have to refund?

Hello @Abskiboo,

 

You can create a refund receipt for the check you have written for your customer. Let me show you how.

  1. Go to + New.
  2. Under CUSTOMERS, select Refund receipt.
  3. Select the customer in question.
  4. Enter all the information needed based on the original sale.
  5. Choose which payment method and account you wish to refund the customer from.
  6. Click Save and close.

In the same manner, here's an article you can read to learn more about how you can enter a refund check: Void or refund customer payments in QuickBooks Online.

 

On top of that, I've also included this reference for a compilation of articles you can use while working with us: Invoices and Payments for QuickBooks Online.

 

If you have any other questions, please let me know by leaving any comments below. I'll be here to lend a hand.

Level 1

How to record if customer wrongly paid twice for the same invoice & I have to refund?

Thank you for your quick reply. It's done!

QuickBooks Team

How to record if customer wrongly paid twice for the same invoice & I have to refund?

Thanks for following up with the Community, Abskiboo.
 

I'm happy to hear JonpriL was able to help with creating your refund receipt.
 

You can also find many detailed resources about using QuickBooks in our help article archives.
 

Please feel more than welcome to send a reply if there's any additional questions. Enjoy the rest of your day!

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