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.
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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.