Customer has credit

srakes4 · ‎February 23, 2021

The customer has a credit from an overpayment. The customer was issued a refund check as indicated in the instructions. The customer's account is showing the credit amount in the overdue column?

ReymondO · ‎February 23, 2021

Good day, @srakes4.

Let me show you the steps on how to properly record a customer refund in QuickBooks Online (QBO).

The first steps that you've made are correct. You'll have to use Check or Expense to record the refund and reduces your bank's balance. Then, this will offset your customer's open credit, overpayment, or prepayment.

However, you need to make sure that the Accounts Receivable (A/R) is selected in the Category column once you create the transaction. This way, you can zero out your customer's credit balance.

Since your customer's account is still showing the credit amount, you can reopen the check/expense transaction and review if you're using the A/R account. If not, you have to update it.

Once done, see to it that it's linked to the refund. If you haven't done this yet, just follow these steps to complete the process.

Click the + New icon and select Receive payment or Receive invoice payment.
Choose the same customer you used for the check or expense.
Fill out the other fields as you see fit.
Under the Outstanding Transaction section, select the checkbox for the Expense or Check you created.
Make sure the payment is equal to the open balance, then select Save and close.

For more details, please check out this article: How to refund a customer in QBO.

Let me know if you need further assistance with this. I'm always around to provide answers and clarifications to your questions. Have a great day ahead and take care.

View solution in original post

ReymondO · ‎February 24, 2021

Hi Customer, @srakes4.

Hope you’re doing great. I wanted to see how everything is going about the refund concern you had yesterday. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!

View solution in original post

ReymondO · ‎February 23, 2021

Good day, @srakes4.

Let me show you the steps on how to properly record a customer refund in QuickBooks Online (QBO).

The first steps that you've made are correct. You'll have to use Check or Expense to record the refund and reduces your bank's balance. Then, this will offset your customer's open credit, overpayment, or prepayment.

However, you need to make sure that the Accounts Receivable (A/R) is selected in the Category column once you create the transaction. This way, you can zero out your customer's credit balance.

Since your customer's account is still showing the credit amount, you can reopen the check/expense transaction and review if you're using the A/R account. If not, you have to update it.

Once done, see to it that it's linked to the refund. If you haven't done this yet, just follow these steps to complete the process.

Click the + New icon and select Receive payment or Receive invoice payment.
Choose the same customer you used for the check or expense.
Fill out the other fields as you see fit.
Under the Outstanding Transaction section, select the checkbox for the Expense or Check you created.
Make sure the payment is equal to the open balance, then select Save and close.

For more details, please check out this article: How to refund a customer in QBO.

Let me know if you need further assistance with this. I'm always around to provide answers and clarifications to your questions. Have a great day ahead and take care.

ReymondO · ‎February 24, 2021

Hi Customer, @srakes4.

Hope you’re doing great. I wanted to see how everything is going about the refund concern you had yesterday. Was it resolved? Do you need any additional help or clarification? If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!

srakes4 · ‎March 08, 2021

Thank you for your help. Sorry it has taken me so long to reply. This wasn't an urgent matter so I had some other work to complete before I could get back to the customer.

I think I finally realized how to complete the task as you indicated. For this customer, I attempted several times and ended up deleting the transactions and re-entering the pledge, payment and credit memo. It looks like I have corrected it for this customer and also a couple of other customers that had the same open balance.

I started using Quickbooks Online in July, 2020 so still learning a whole lot on the transactions.

I do appreciate your help.

One other question I have since getting this one updated, is there a report I can print to see if I have other discrepancies? I looked through my customer list and all the balances look correct and no open balances. I just like to verify with a report if there is one to review.

And, one more question, I have customers that paid an enrollment fee (company is a Christian Academy and payments are tuition). The enrollment fee was non-refundable if you elected not to attend for the 2020-2021 school year. Since, these customers have the enrollment fee entered as payment on their account and it's non-refundable to the individual, how do I add that back to the checking account rather than a refund to the customer?

srakes4 · ‎March 08, 2021

Thanks for your help. Sorry it took me so long to reply.

Catherine_B · ‎March 08, 2021

It's good to hear back from you, srakes4.

You can run reports where you can add the Open Balance to see if there are mistakenly entered transactions that contributed to the discrepancies of the opening balance. I'll show you how to run the Transaction List by Customer report and add the Open Balance column.

Click Reports from the menu.
In the search field, enter and click Transaction List by Customer.
Click the small gear icon at the upper-right of the report and then Show More.
Check the Open Balance box.
Click Run report to refresh.

There you can see the open balance and the transactions you've entered for each customer. For the enrollment payments, you can record a bank deposit to put it in the Checking bank account.

To handle your transactions and get an overview of them, you can run reports and customize them.

Let me know if you have other questions. Take care and stay safe!

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Customer has credit