Hi there, Swapna.
You can record a refund for the customer's change. Doing this will reduce your bank's balance and offsets the customer's open credit. To do this, you may use a check or expense transaction.
Let me show you how:
- In the left menu, click the + New button.
- Choose Expense or Check.
- Select the customer you want to refund from the Payee ▼ drop-down.
- From the Payment account drop-down menu, select the bank account in which you deposited the overpayment.
- On the first line of the Category column, choose Accounts Receivable.
- Enter how much you want to refund in the Amount field.
- Fill out the other fields as needed.
- Click Save and close.
Once done, link the refund to the customer's credit.
- In the left menu, click the + New button.
- Choose Receive payment.
- Select the same customer you used for the check or expense.
- Fill out the other fields as you see fit.
- Under the Outstanding Transaction section, select the checkbox for the expense or check you created earlier.
- Make sure the payment is equal to the open balance.
- Click Save and close.
To learn the different ways in managing customer overpayments, see this article: Handle a customer credit or overpayment in QuickBooks Online.
As for your other question, once your bank transactions download on the Banking page, you can match it to the transactions manually recorded in QuickBooks, so you don't get duplicates. For more information about this process, visit this link: Categorise and match online bank transactions in QuickBooks Online.
Feel free to leave a comment below if you have additional questions about recording the transactions. I'm always here to help you out. Wishing you and your business continued success.
