Can you create a credit memo from an overpayment from a customer? It shows an overpayment, but I need to print the credit memo.

Let me guide you on how to create and print a credit memo, @abainter-ancient.

You can delete the original payment transaction and then create a new one with the exact amount. After that, you can generate a credit memo to account for the remaining overpaid balance. Alternatively, you can print and send customer statements. This will allow them to view their credit balance.
 

If you'd like to delete the original payment transactions, let's try recording the receive payment with the exact amount from customer. 

Here's how:
 

1. Go to +New and select Receive payment.
2. From the customer dropdown, choose your customer.
3. Enter the Payment Date and Payment Method. 
4. Hit Save and close. 

Then, you can create a new credit memo for the remaining balance. Here's how:

1. Go to +New and select Credit memo. 
2. From the customer dropdown, choose your customer.
3. Select the Product and Service
4. Enter the overpaid amount to the Amount field. 
5. Hit Save and send.
6. Click the Print, if you wish to print your credit memo.
7. Click Send and close.

Learn more about handling your customer credit memo here: Handle a customer credit or overpayment in QuickBooks Online.

I'm adding these articles if you wish to refund and record your customer in the future:
 

• Void or refund customer payments in QBO.
• Record a customer refund in QBO. 

Let me know in the comment below if you have further questions about managing your customers' transactions. Keep safe! 

@abainter-ancient 

Obviously, @ShyMae 's advice will not work since you don't want to delete the payment received. 

This is another function that is lacking in QB Online that QB Desktop made so easy.  In QBO, the overpayment is sitting as a credit to A/R.  When you create a credit memo, it credits A/R just as your overpayment did.  So, we need to close out the overpayment that you received that is currently sitting as a credit to A/R and then create a credit memo.

The first thing to do is to create bank account in QBO called "Clearing Account".  Next, create a service product called "Customer Overpayment" and select the bank Clearing Account under the Income account drop-down menu.  Then, create a journal entry: debit A/R (select the customer's name under NAME) and credit the newly-created bank Clearing Account.  Now, go to Receive payment and select your customer.  You should see the journal entry and the overpayment from your customer.  Apply the overpayment to the journal entry.  Finally, create a credit memo and select the Customer Overpayment service item for the amount of the overpayment.  You now have a $2,000 credit memo for the customer that can be applied to a future invoice and the Clearing Account is zero.  

Did I mention how much easier this was in QB Desktop?

@Rainflurry this worked perfectly. Thank you for posting!

@Rainflurry this worked perfectly. Thank you for taking the time to post!

I have the credit memo but need to send a check back to the customer.  How does it get cleared from QB? 

Let's make sure to clear the customer's overpayment, justwhenithinkigotit.

You can create a check to reduce your banks' balance and offsets the customer's overpayments. To do so, follow the steps outlined below:

1. Click + New.
2. Select Check. If you're in Business view, follow the steps to switch to Accountant view first. Then come back to these steps.
3. Select the customer you want to refund from the Payee ▼ dropdown.
   
4. From the Payment account ▼ dropdown, select the bank account where you deposited the overpayment to.
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 as you see fit, then select Save and close.
    

Once done, you can receive payment to link the credit memo and check and clear the customer's credit. Here's how:

1. Click + New, then choose Receive payment.
2. Select the same customer you used for the check or expense when recording the refund.
3. Fill out the other fields as you see fit.
4. Under the Outstanding Transaction section, select the checkbox for the Check you created when recording the refund.
5. Make sure the payment is equal to the open balance, then select Save and close.
   

Moreover, you can run reports, so you'll be able check accurate details of your data. You'll only have to ensure to customise them so right data shows up. I've got this article for more details:  Customize Reports In QuickBooks Online.

Let me know if ever you have further questions about overpayment. I'll be right here in case you need help.

How is this done in QB Desktop?

How do you do this in QB Desktop 2021?

Thanks for joining this thread, kellyp77.

I'm here to lend a hand with your QuickBooks account.

Just to make sure I'm on the same page, are you looking to create a credit memo or create a check to reduce the balance in QuickBooks Desktop?

Please let me know so I can get back to you with the steps. I'll keep an eye out for your reply.

That did not work for me, I have QB Desktop and it was not an overpayment, the customer out of the blue made a direct deposit  to my account that was meant for another vendor and he told me to keep it as a credit. I never had an invoice for this charge so wound up with $500 deposited to my account that now needs to be turned into a credit

I did make a deposit and the $500 shows as a credit to the customer but when I tried your approach, I wound up with the Accounts Receivable account balancing but after creating the credit memo, I wound up with $1,000 credit to the customer so it doubled. 

I would not care if I had printed the credit memo originally when the deposit was made, so have nothing to send the customer. Deleting the deposit will not work as it will screw up 3 reconciliations (This customer is only serviced twice a year) The credit does show up in the statement if I print it but it is not existent as a printable item in Quickbooks. 

I wish it had been a check he sent, it would have been easier to just shred it and be done with it, but am stuck with it for now.

Hello there, @RValdes.

I understand the situation you're facing, and I'm here to help you handle this in a way that aligns with your existing records and allows you to maintain accurate financials. Since the deposit wasn't tied to an invoice, QuickBooks created a credit automatically when you recorded the deposit. To address your issue without causing reconciliation errors, follow these steps:

Here's how:

1. Go to the Company tab and select Chart of Accounts.
2. Head to the account where you created the deposit.
3. Look for the deposit transaction and open it.
4. Click the Print dropdown menu and choose to print the Deposit Slip or Deposit Summary.
5. Follow the on-screen instructions to complete the printing.

Next, we'll need to link the credit to the deposit. Here's how:

1. Go to the Customers menu and select Receive Payments.
2. In the Received From field, select the customer.
3. Input $500 as the payment amount.
4. Apply the credit by checking the box next to it in the Credits section.
5. Click Save & Close.

By following these steps, you can maintain accurate records without affecting your previous reconciliations.

Additionally, you can also consider checking out this article to learn how to create refunds for your customers in QBDT: Give your customer a credit or refund in QuickBooks Desktop.

If you have any further questions or need additional assistance, please don't hesitate to reply below. I'm always here to assist you.