What is the correct method to issue a refund check for a customer overpayment.

Happy Wednesday, @vernonz.

I’m glad to offer my assistance with issuing a refund check. 

Here’s how:

1. The check is filled out automatically. Choose OK.
2. Link the check to the overpayment. Go to the Customers menu and then select Receive Payments.
3. From the Received from the drop-down, pick the Customer. Then, find the Discounts and Credits icon.
4. In the Available Credits section, pick the check you created and then Done.
5. You may see a prompt to Confirm transfer. If you do, select Yes. The amount will be applied automatically to the invoice.
6. Go to Save & Close.

Let me know if you have any other questions. Have a good one.

A check was issued for an over payment on a customer account. The Customer:Job name was used.  The check has cleared our bank but now this amount appears as an open item in the Customers Open Balance report?  Not sure what was done incorrectly and how to fix.

Thanks!

Hello there, TVo.

I'll help you record the refund check that you have created for the customer.

After creating the refund, you can record it for your customer.

Here's how:

Step 1: Record the refund

1. Click on + New.
2. Choose Expense, Add expense, or Check. If you're in Business view, follow the steps to switch to Accountant view first.
3. Select the customer you want to refund from the Payee ▼ drop-down.
4. From the Payment account ▼ drop-down, choose the bank account where you deposited it.
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.

Step 2: Link the refund to the customer's credit or overpayment

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

You can also check on how to void or refund a transaction.

Please let me know how it goes or if I can be of more help. I’m always here to help. Take care and enjoy the rest of your day!

Shoot, are your instructions for the Online version?  This is in 2021 Premier Manufacturing & Wholesale Edition.

Thank you for coming back and clarifying the QuickBooks Desktop version you're using, TVo.

When processing a refund to the customer, we can create a Credit memo wherein the check is filled out automatically once we apply for a refund. Here's how to create a credit memo: 

1. From the Customers menu, tick Create Credit Memos/Refunds.
2. From the Customer:Job drop-down, choose your customer.
3. Enter the items you're giving credit for.
4. Press Save & Close.

Then, give a refund by following the steps below:

1. The check is filled out automatically. Tap OK.
2. Link the check to the overpayment by going to the Customers menu.
3. Select Receive Payments.
4. From the Received from the drop-down, choose the Customer.
5. Hit the Discounts and Credits icon.
6. In the Available Credits section, choose the check you created.
7. Press Done.
8. You may see a prompt to Confirm transfer. If you do, select Yes. The amount will be applied automatically to the invoice.
9. Click Save & Close.

For further guidance, you can refer to the Record a Credit Memo or Refund in QuickBooks Desktop article. If you already created a check and it's causing a duplicate one, just delete it. Before doing that, just create a backup first. Here's how:

1. From the File menu, select Back Up Data.
2. Specify the backup location. To back up to the default folder on the local hard drive, select Default Location.
3. To back up to a network drive or removable media, select Specify Alternate Location and enter the path or browse to the backup location and enter a file name.
4. Tap Backup then Finish.

Feel free to visit our Sales and customers page for more insights about managing your company's income and customers.

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Please reply to this post and I'll get back to you. Take care always.

So as this transaction dates back to 7/2020 I can assume the process that took place, maybe!  Our customer made an over payment.  Sales rep requested we issue a refund check.  I can't tell just by opening up the transaction what process was specifically done.  What I can see is an AP check written to the Customer for the over payment amount.  Pay to the Order of is the Customers AR Name (not a Vendor name).  GL code used was AR.  So because the Customer's name was used it now shows as an amount owed on the Customers Aging.  Obviously I cannot void this check.

Thank you for your patience!

Thank you for reaching out to the Community, @TVo.

We can customize the Transaction Detail report to the specific filter you want to show in data. 

Could you please check where did the overpayment was applied to? if there's an overpayment there's should be a negative balance to the customer before the check was issued. 

That's where the check is written should be linked so the A/R aging will be zeroed

The Custom Transaction Detail Report shows all transactions of all the accounts. It doesn't have an option to add a summary total of all transactions of the account. You still need to filter the report by Account and export it to Excel to see the total. 

Here's how: 
 

1. Open the Custom Transaction Detail Report.
2. Click the Customize Report button and go to the Filters tab.
3. Look for Account and filter it to the account you want.
4. Hit OK and click the Excel button.
5. Select Create New Worksheet or Update Existing Worksheet.
6. Click Export.

Another report that I think might help you is the Transaction Detail by Account report. It has a list of all transactions of all the accounts. Also, the total summary is already added at bottom of each account.

1. Click Reports at the top menu.
2. Select Accountant & Taxes and click Transaction Detail by Account.
3. Change the date range and click Refresh.
4. You can click the Customize Report button if necessary.
5. Then, you can export it to Excel.

We'll be right here if you need additional help in customizing the reports to get the data you need. Have a great day!

The account used from the Chart of Accounts was named Accounts Receivable and the type was Accounts Receivable.  When I double click on the transaction from the Custom Transaction Detail Report, it takes me to the check that was processed. 

Hello there, TVo.

It's possible that the check was not applied to the invoice that's why it looks like the customer still has a credit. You can open the Invoice the history of the linked transactions. Let me show you how: 

1. Click Customers and then Customer Center.
2. Select the customer that you issued the check and then double-click on the invoice.
3. Click the See History link near the PAID stamp.

You can follow Option 2: Give a refund steps on this link about give your customer a credit or refund in QuickBooks Desktop for Windows.

Let me know how this works. I'll be around to keep an eye on your reply and help you sort things out.