How to handle a Customer Credit or Overpayment in Quickbooks Online

[@jamesebrey1876]

Hi Enoch, Thanks for all of the great advice for QBO. At the end of the video, regarding customer over payments, you say to look out for a video on how to record them as a Tip. I'm wondering if you have a link to that video tutorial please? I used Quickbooks Online in Canada and have followed these steps in the Quickbooks support: Step 1: Add an income account to track tips Go to the Accounting menu and select Chart of Accounts. Select New. For Account Type, select Other Income. For Detail Type, select Income. Enter a Name, like "Tip Revenue" and select Save and Close. Step 2: Create a tip item Go to the Settings ⚙ icon and select Products and Services. Select New, then Non-inventory. Enter a Name, like "Tips." For Income account, select the account you created in step 1. Select Save and close. Step 3: Record the extra money as a tip Go to the Sales menu, select Invoices. Select New Invoice. Enter the Customer. In the Products/Services field, select the tip item you created in step 2. Select Save. If your credits are set up to apply automatically, you're done. Otherwise, select Receive Payment. Select the credit and then Save and close. I followed the above steps, but there was no instructions on what to put in the Sales Tax column, I have put GST. That customer payment is now closed, but I just wanted to confirm if this is correct? Sorry for the long comment. Thank you. James

[@kalindemirov8413]

How about if this is a single time customer, and refund has to be given? They don't want to order anything else.

[@thesweetlifeeveryday8143]

Thank you Enoch!

[@debbiezambeck473]

Customer overpaid, their check has already been deposited and invoice closed, how do I issue a check to them for their overpayment? This job is over so a credit for a future invoice wouldn't work here.

[@ellielynn8219]

How do I issue a receipt showing the overpayment? They didn’t want a refund, they want to apply to next invoice but they want a receipt showing the credit. I’m afraid if I issue a credit memo I’ll double up on their credit. I hope you see this, thank you!

[@honestaccgroup]

Here is my video response for you. Let me know if this helps! kzbin.info/www/bejne/m6vNiYCGj8aKntU

[@eileenjaneke1943]

Hi, the customer owes 1 invoice only. He has overpaid - by bank transfer. How to handle that? Thanks.

[@honestaccgroup]

Hi Eileen, regardless of how he or she paid the overpayment will simply stay in the account as a credit. You have two options, leave it there or refund the customer that overpaid to zero out the overpayment.

[@randieaton9834]

How do we undo a credit?

[@randieaton9834]

I actually work for QBO.