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.


Answered on January 24, 2019.

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.