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I-B
Level 1

Reversed Vendor Overpayment

I have a vendor who accidentally paid me twice for the same invoice.  I entered the invoice with the proper amount, then I entered their payments against the invoice so they have a credit.  However, they now went and reversed the payment at the bank so they've now effectively paid the correct amount but I need to reconcile the books with the bank transactions.  How do I do that exactly?  I tried to write a cheque from the bank account so I'd have a negative transaction in QuickBooks to reconcile with the bank transaction file but this doesn't end up removing the credit.  Thanks for any help.

Solved
Best answer December 22, 2020

Best Answers
KlentB
QuickBooks Team

Reversed Vendor Overpayment

I can definitely help you with that, I-B.

 

When a customer overpays you, you can refund them from their credit memo or directly write a refund check to offset the amount on your Accounts Receivable. Since they've reversed it, you'll have to link the check you've created to the overpayment so that the amount of the credit will be zeroed out. Here's how:

 

  1. Select Customers from the top menu bar.
  2. Choose Receive Payments.
  3. From the Received from drop-down menu, select the Customer.
  4. Click the Discounts and Credits icon.
  5. In the Available Credits section, select the check you created and then Done.
  6. If you'll be prompted to confirm the transfer, click Yes. Once done, the amount will be applied automatically to the invoice.
  7. Hit Save & Close to complete the process.

To learn more about this process, you can check this article: Give your customer a credit or refund.

 

I also recommend reading our Reconciliation Guide to help keep your accounts balance and up-to-date.

 

Keep me posted if you have any other concerns or follow-up questions. I'll be more than happy to assist you again.

View solution in original post

3 Comments
KlentB
QuickBooks Team

Reversed Vendor Overpayment

I can definitely help you with that, I-B.

 

When a customer overpays you, you can refund them from their credit memo or directly write a refund check to offset the amount on your Accounts Receivable. Since they've reversed it, you'll have to link the check you've created to the overpayment so that the amount of the credit will be zeroed out. Here's how:

 

  1. Select Customers from the top menu bar.
  2. Choose Receive Payments.
  3. From the Received from drop-down menu, select the Customer.
  4. Click the Discounts and Credits icon.
  5. In the Available Credits section, select the check you created and then Done.
  6. If you'll be prompted to confirm the transfer, click Yes. Once done, the amount will be applied automatically to the invoice.
  7. Hit Save & Close to complete the process.

To learn more about this process, you can check this article: Give your customer a credit or refund.

 

I also recommend reading our Reconciliation Guide to help keep your accounts balance and up-to-date.

 

Keep me posted if you have any other concerns or follow-up questions. I'll be more than happy to assist you again.

View solution in original post

I-B
Level 1

Reversed Vendor Overpayment

Hi KlentB, thanks so much for your fast reply.  I'm looking at the Receive payments after selecting the customer but the Discounts and Credits button is disabled.  However, at the bottom of the screen it does say 'Available Credits' and shows the amount of the overpayment.  Any idea why the button would be disabled?  Thanks.

JonpriL
Moderator

Reversed Vendor Overpayment

Hello @I-B,

 

The Discounts and Credits button is disabled or grayed out once there's no transactions that the credits can be applied to. Let show you a few screenshots for visual reference.

 

Additionally, I've also included this helpful reference for compilation of articles to help organize your customer transactions: Learn the different ways you can track customer transactions in QuickBooks Desktop.

 

If you have any other questions, please let me know by leaving any comments below. I'll be here to lend a hand. 

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