How do I clear open refund receipt balance?

Client accidentally sent an over payment for my invoice. I wired the difference back. In QuickBooks online, I received the total amount and created a Refund Receipt for the difference. This shows up as both a receipt and a check in the bank, but does not clear the over payment for the client.

Asked on December 18, 2018 in Account Management.
1 Answer(s)

Hello Robert!

Thanks for posting on our Community Forum.

A lot of similar questions are incorrectly answered or incomplete.

Step 1: You notice your customer has a negative balance from either overpaying or a credit memo.

Step 2: When returning the money to your client, DO NOT go (+) Cheque in QBO.  Instead, select Refund Receipt under (+) Customers. Fill in the details for the payment to your client, select the Product/Service that matches the invoice that was overpaid / credit memo you gave, OR creates a new product and service called Refunds.  This will credit the selected bank account and allow you to print as a cheque.

Step 3: (+) Create Invoice for that client with the exact same details as the refund receipt – date, account, etc.

Step 4: (+) Receive Payment for that client.  Select the new invoice and the Refund Receipt will appear as an un-applied payment in credits. The balance of cash should be zero for the payment.  This provides the correct journal entries and clears all the A/R sub-ledgers for the client.  Client balance should be zero.

You can also contact our QuickBooks Support Number.

Hope this helps.

Cheers!

Answered on January 24, 2019.

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