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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.


 

1 Comment 1
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QuickBooks Team

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.

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