How to Refund a Customer's Overpayment in QuickBooks Desktop?

  • January 11, 2024

Have you ever come across a situation of receiving an amount that is more than what was on paper or in other words overpayment? Then do not worry, QuickBooks allows you to get out of this by simply providing you the refund facility.

How To Refund A Customer Overpayment in QuickBooks Desktop

You can refund the overpayment by two methods either by check refund or by refund through the credit card.

1. Method One: Refund Through Cash or Check

When you see that the client's account balance is not in positive or is very low when estimated with the actual amount that he owes you and you receive an overpayment then the mode of refund that you should use is the check.

To do this, follow the steps given below:

  • Firstly open your QuickBooks software and select the plus sign on the top right of the window, then choose the check option.
  • Then select the name of the client and type in all the necessary information for the check.
  • Next, you need to choose the Accounts Receivable option from the Accounts Detail list.
  • Now you need to go to the customer column and choose the name of the customer for whom the refund is to be done. (Note: You can see the Customer column only if the billable expense is used by you.)
  • At last tap on the save button to save the changes, you have made.

Read This: How to Add Old Expenses Already Paid into QuickBooks?

After following these steps at times you come across the situation that your account receivable report shows the transactions are open then to resolve this issue follow the steps given below:

  • First of all, select the plus symbol and then click on the receive payment option from the list.
  • Then choose the name of the client and do not type anything on the remaining fields of the form.
  • Next, go to the credits tab and select the checkbox in case of overpayment.
  • After that click on the checkbox that was created by you for a cheque in the Outstanding Transaction section.
  • At last click on the save button. 

2. Method Two: Refund Using the Credit Card

While doing the refund using the credit card make use of the refund receipt

  • The very first thing you should do is launch your QuickBooks Desktop application.
  • Then click on the plus symbol and select the Refund Receipt option.
  • Next, choose the client and choose the service or the product that delineates the main income account.
  • After that type in the positive value and all the necessary and appropriate details and tap on the Save button.

3. Method Three: Create an Invoice

A simple way to create an invoice in QuickBooks Desktop is to navigate to the home screen, find the Create Invoice button, and then click it to go to the next screen. After we click the button, we need to choose a customer from the drop-down menu. In this tutorial, we'll use Sample Customer as our example customer. Next, we select the item "Blueprints" from the line items and begin filling out the information about the hypothetical product we've sold to the customer. Once the description is autopopulated, it will be up to us to fill out the quantity, unit price, and whether the item is taxable. Upon entering “1” for the quantity, 99” for the price, and selecting “taxable,” we will create an invoice record by clicking save and close.

Issues Faced by User While Doing Refund Of Customer Overpayment in QuickBooks

Some users say that when they make the refund payment through the credit card the transactions on the account receivable reports remain open and they encounter an error. So to solve this issue you can follow the instructions given below or if it does not help you then you can ask for help from our SMB Technical Support team they will surely get you out of this problem.

To resolve the transaction that remains open in the accounts receivable reports issue follow the steps provided below:

  • First of all, select the plus sign that is located at the top of the window then click on the receive payments option.
  • Next, choose the name of the client.
  • Keep all the other sections or fields of the form blank.
  • After that for viewing the actual entries tap on the plus sign in the credits section.
  • At last tap on the save button.

Perform A Refund on Quickbooks Pro, Online, or Enterprise

To initiate a refund on the pro, online & Enterprise versions of QuickBooks, You need to perform the mentioned below steps carefully:

  • Login to your QuickBooks company account and navigate to customers to create Memos or Refunds.
  • Now click choose the customer in the favor of which you want to do the refund.
  • In the first blank row that appears, enter the item returned. You will be able to choose the item returned by clicking the drop-down button from the box.
  • Now choose the “Use Credit to Give Refund” tab and hit OK.
  • When all set and done, click save.
  • Congrats you have initiated the refund on QuickBooks.

If still, you are still facing issues doing the refund, then you can contact our SMB Technical Support team they will help you get the best solution to the issues. Our SMB Product Help is available round the clock to assist you. You can call our SMB Helpline through our phone number ? We offer the swift and best responses to the questions asked.

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