Hello there, @dlombar1.
When you write a check or expense to record the refund, it will reduce your bank's balance and offsets the overpayment. Recording a refund to your customer with a check is quick and easy, and I'd be happy to show you how.
Here's how:
1. On the left pane, select the + New icon.
2. Select Check under Vendors column.
2. On the Category details section, enter/choose the following:
- Accounts - Accounts Receivable.
- Amount - Overpayment amount.
- Customer - Customer's name.
3. Hit Save and close.
After that, link the refund with the overpayment by following the steps below:
- Go back to the + New icon and pick Receive Payment under Customers column.
- Choose the customer's name on the Customer field.
- Select the check created on the Outstanding Transactions section and the Unapplied Payment on the Credits section.
- Ensure that the Amount Received is zero, then hit Save and close.
For additional information, I've included an article for other options to enter a refund based on various scenarios: Record a customer refund.
Feel free to post again if you have any other questions. I'll be here in the Intuit Community to help. Have a great day ahead.
