Customer paid the same invoice online twice and we received double payment. How to correct it?

Thanks for reaching out, @ylim.

I'm here to help you get your customer's double-payment sorted. You can refund the customer's additional payment by following these super easy steps:

1. Go to Sales, then Invoices.
2. Open the invoice you want to refund the payment for.
3. Click More, then Refund.
4. Select Yes, refund my customer.

Depending on how long it's been since you processed the payment, you may need to create a refund receipt. This is also super easy. Check it out:

1. Click + New, then Refund receipt.
2. In the Customer ▼ drop-down arrow, locate and select the customer's name that you want to refund.
3. Fill out the fields using the info from the original sale.
4. Hit Save and close.

That's it! Once you've processed the refund, it will be appropriately recorded in QuickBooks. If you'd prefer to record refunds manually, I recommend checking out: Record a customer refund

Please touch base with us here if there's anything else you need, I'm determined to ensure your success. Cheers to a safe and productive week ahead!

@Michael K  I have a similar issue...How do I record the overpayment as an unapplied credit on the customer's account? I've already applied the original payment to the invoice and don't want to issue a refund...

Thanks for joining the discussion. I can share some more information about applying credits, @Teesa66,

You can use a credit memo to log an unapplied refund in QuickBooks Online. Here are the steps to do that:

1. Tap the + New button and choose Credit memo or Give credit.
2. Select the client's name, then fill out the all the information of the credit including the date.
3. Once done, hit Save and close.

Once you're ready to apply this credit as a payment on the customer's invoice, follow the steps below:

1. Go back to the + New icon and select Receive payment or Receive invoice payment.
2. Fill in the customer’s name, and other important fields.
3. Make sure to leave the fields for Payment method, Reference no, Deposit to, and Amount received blank.
4. Proceed to the Credits section and select the credit memo you just created.
5. Add the credit amount you want to use in the Payments column.
6. Make sure the total to pay (if any) is correct after applying the credit memo.
7. Once you're done, hit Save and close.

Check out the following article to learn more about using the and applying a credit memo: Create and apply credit memos or delayed credits in QuickBooks Online

Feel free to connect with me again if there's anything else you need. I'll be more than happy to help you at any time. Have a lovely week ahead!

@Jen_D  Thanks for the info on creating the Credit Memo; I've done that now. But, I'm unable to find/select the Credit Memo when matching/categorizing the day's deposit. What do I need to do to finish posting the deposit? (This is a linked bank account, if that matters...)

It's good to see you back, Teesa66.

Allow me to chime in and share another way to match the customer overpayment.

You can record the overpayment in the system by making a bank deposit and applying it to your Account Receivable (A/R) account. 

Here's how:

1. In the left menu, click the + New button.
2. Choose Bank Deposit.
3. In the ACCOUNT field, pick the bank account and enter Date.
4. Go to the Add funds to this deposit section. 
5. In the RECEIVED FROM column, select the customer and choose Accounts Receivable for the ACCOUNT. 
6. Fill in the other needed information. 
7. Hit Save and close. 

Once done creating a bank deposit, you can now match it to the bank transaction. 

For more information about matching downloaded transactions, check this article: Categorize and match online bank transactions in QuickBooks Online.

I'm just here if you have further question about the process above. Just leave a comment below. Have a great day!

@MirriamM Hi! Thanks for the info. I am confused though, so let me clarify. This over payment was only one of the invoices the customer paid on their check. This check was one of several that comprised the single deposit transaction that was downloaded by our bank account which is linked to our QBO account. Are you saying I need to create a separate, new bank deposit in QBO just for this portion of this check? How does that help me categorize and post the deposit transaction that was downloaded from our linked account? As of now, I've received the payments for all of the invoices paid by checks on this deposit, but I can't categorize them on the QBO deposit transaction since the amounts don't balance...

I've re-read your concern to make sure that I understand what you want to achieve, @Teesa66. 

To clarify, there are three different ways on how to handle customer credit or overpayment in QuickBooks. You can either refund the customer, enter the overpayment as a tip, or use it towards the next invoice. 

Though, the steps provided by my peers above are both correct in handling customer overpayment. 

The first set of steps provided by my peer @Jen_D will help you record the overpayment as an unapplied credit on the customer account. 

Should you want to apply the credit towards the next invoice, you can follow the second set of steps shared by @Jen_D. Then, follow the steps to categorize and match online bank transactions in QuickBooks Online.

However, if you'd like to record the overpayment and match it with your downloaded bank transaction, the steps provided by @MirriamM will work, and you can follow that instead. 

And yes, you'll need to make a separate bank deposit to record the overpayment. Once done, you'll be able to match it with your downloaded bank transaction. 

For future reference, read through this article to learn more about how to give and apply a credit memo to your customer: Create and apply credit memos or delayed credits in QuickBooks Online.

Feel free to leave a message if you have additional concerns. We're always here to assist you further. 

I am unable to solve in the manner explained here. Quickbooks Payments ran two charges for the same amount instead of 1. 

I was unable to issue a refund from Quickbooks and the customer was furious so I used the Quickbook Intuit Payments Access Dashboard to request the refund be processed. I could clearly see where the same payment was processed twice. 

When things work it's an acceptable challenge to use Quickbooks but when something in the technology fails, I invest hours in trying to find a solution and it really makes me beg for a new option for Bookkeeping for my small business. I don't understand why the recurring error messages I receive do not allow me to proceed but being left to forums is a poor way to manage support services in finding a resolution. 

Hello there, @MrRMichaels.

It's my priority to help you get this payment charge concern taken care of.

I can see the importance of being able to process a refund for the duplicate charge made in QuickBooks Payments to keep your records accurate.

However, to help verify the reason behind that problem that you've encountered, I recommend reaching out to our QuickBooks Payments Team. They have the tools that can check the reason behind this matter and help you process the refund.

To reach them: 

1. Click on Help at the top menu bar.
2. Hit on the Contact Us button.
3. Enter a brief description of the issue in the What can we help you with? box.
4. Press on Let's talk.
5. Select on Get a callback.
6. Key in your contact details, then tap on Confirm my call.

On the other hand, for more details about when to process refund together with the corresponding fees for QuickBooks payment transaction, please see these references: 

• Learn how to void or refund payments you process through QuickBooks Online
• Understand fees for refunds or void transactions

Know that my doors are always open to help should you need anything else about processing payments in QuickBooks. Take care!

Thanks MirriamM - I've used your method in the past, but I'm having some trouble with a current situation, that I believe is the same as the OP. A client made a duplicate payment of an invoice via check, and both the original payment and duplicate payment were received and deposited. The second (duplicate) payment was received (mistakenly) against a subsequent invoice in the same amount. Both payments made (original and duplicate) covered multiple invoices. I have since sent a refund check to the client in the amount of the duplicate payment.

So for example, a check was sent for $24,400 that covered 2 invoices, say Invoice #1 and #2. Invoice #2 of the invoices listed on the check advice was the duplicate payment in the amount of $4,000, as in invoice #2 had already been paid by the client. When that $24,000 check was deposited and received into the register, the $4,000 payment was mistakenly received against another invoice, Invoice #3 that was open in that same amount. I need that invoice #3 open. How can I undo that so I can receive payment on invoice #3, and correct the original deposit of invoice #1 and #2? In the meantime, we have sent a check back to the client in the amount of $4,000 to account for the duplicate payment of invoice #2.

Thanks!!

Let me provide the steps on how to undo the recorded payment, StephenL.  

You'll want to open the payment transaction and remove the invoice linked to it in QuickBooks Online. Let me walk you through how: 

1. Go to Sales, and select All Sales. 
2. Click the Paid. 
3. Select the payment you want to undo. 
4. Press More at the bottom of the page, then Delete. 

This process will delete the payment from your register, change the opening balance, and mark the invoice as unpaid and open. Then you can apply the open invoice and receive payment on invoice #3. 

I'm also attaching these handy articles for your reference.

• Undo the Receive Payment of an invoice.

• Undo and remove transactions from reconciliations in QuickBooks Online.

• Learn the reconcile workflow in QuickBooks. 

Let me know if you have other questions or need further clarification. Take care and stay safe always.

Thanks for the reply, but this action does not solve my problem. I understand the steps you're walking through, however, the issue is the actual bank deposit was made in the amount of $24,000. If I simply unlink one invoice from the deposit and receive it to a new deposit, the account will not reconcile. I believe I need to follow some steps that involve creating a "new deposit" in AR, or make a credit memo that I can attach the duplicate payment to, then when the refund check clears I can tie that to the memo...but that's what I'm not clear on.

As always, thanks.

Hi - I have a similar situation.  My customer paid the same invoice twice. Both of the payments were applied, which generated a credit balance. We then generated a Refund Receipt and refunded the customer's card, but it still shows that they have a credit balance.  How do I get their account to show there is not a credit balance on the account?

Hi there, 587106411929391.

Welcome back to the QuickBooks Community. I'll ensure you can record the customer's overpayment smoothly to offset the credit balance on their account. Then, provide details on how the refund receipt works on the customer side.

When you need to return your customer's money due to an overpayment, there are several ways to record a refund depending on the scenario. Since your customer paid the same invoice, you can use the Check or Expense to reduce your bank's balance while offsetting the customer's open credit or overpayment.

Here's how:

1. Click the + New button.
2. Chose Expense, Add expense, or Check.
3. Select the customer you want to refund from the Payee dropdown arrow.
4. From the Payment account dropdown, choose the bank account to which 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 in other necessary fields.
8. Click Save and close.

After that, you have to link the refund to the customer's credit or overpayment. Please follow the steps below.

1. Select + 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 needed.
4. Choose the checkbox for the Expense or Check you created when recording the refund under the Outstanding Transaction section.
5. Make sure the payment is equal to the open balance.
6. Click Save and close.

Then, please know that refund receipts are used if customers ask for a refund for an item or if they didn't satisfy the goods and services. This is the reason why still show that they have a credit balance or an unapplied payment.

Lastly, you may refer to this article to see various details on how the Sales page gives you a great at-a-glance view of all the status of sales transactions like open and paid invoices: View sales transactions.

Feel free to click the Reply button below if there's anything else you need about handling a customer overpayment. I'll be more than happy to help you at any time, 587106411929391. Have a lovely week ahead!

Thank you - this worked!

Good morning, @587106411929391. 

I appreciate you joining back in. I'm so glad my colleague's instructions helped resolved your issue. 

Feel free to ask any other questions you may have. We're always here to have you back. Best wishes!