How do I record an overpayment that I recieved a cash refund for?

Boatrepair01 · ‎March 17, 2021

We collect taxes on the sale of boats and motors and remit them to the state. I have created an account in my chart of accounts for this purpose. I accidentally overcharged my customer for these taxes, and when I submitted the check to the state, they gave me cash back for the overpayment. I corrected the line item in the invoice to the customer and created a check for the overpayment, so that part is taken care of. When my check appears in Quickbooks, it will be $14 over the amount it should have been, and my liability register for this account is showing a balance of -$14.00. How can I account for my cash deposit of $14.00 with my cleared check that is over $14.00 to make my liability register in my chart of accounts $0 again?

SarahannC · ‎March 17, 2021

Hello there, Boatrepair01. Let me help you resolve it now.

We can utilize the bank deposit feature and account for your cash deposit of $14.00 as an expense. It will show as 0$ again in your Chart of Accounts.

To guide you further, please follow the steps below:

Go to the +New button.
Select Bank Deposit.
In the ACCOUNT field, select the bank account where you want to deposit the value.
Tick the boxes of the transactions to deposit in the Select the payments included in this deposit.
In the Received From column, enter the name of the state agency.
Make sure to select an expense account in the ACCOUNT column.
Once done, click Save and close.

Here's a sample screenshot for additional reference:

Please consider checking these handy articles for additional information about handling sales tax:

You can always go back here if you have other questions. I'm always around to help you more. Take care and stay safe always.

View solution in original post

SarahannC · ‎March 17, 2021

Hello there, Boatrepair01. Let me help you resolve it now.

We can utilize the bank deposit feature and account for your cash deposit of $14.00 as an expense. It will show as 0$ again in your Chart of Accounts.

To guide you further, please follow the steps below:

Go to the +New button.
Select Bank Deposit.
In the ACCOUNT field, select the bank account where you want to deposit the value.
Tick the boxes of the transactions to deposit in the Select the payments included in this deposit.
In the Received From column, enter the name of the state agency.
Make sure to select an expense account in the ACCOUNT column.
Once done, click Save and close.

Here's a sample screenshot for additional reference:

Please consider checking these handy articles for additional information about handling sales tax:

You can always go back here if you have other questions. I'm always around to help you more. Take care and stay safe always.

SarahannC · ‎March 21, 2021

Hi Boatrepair01,

Hope you’re doing great. I wanted to see how everything is going about recording an overpayment that you received. 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!

Boatrepair01 · ‎March 24, 2021

Yes, thank you very much :) Your response made everything balance. Sorry for the delayed response, I had to wait for the transaction to clear and look at the reports to make sure I did everything correctly.

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How do I record an overpayment that I recieved a cash refund for?