Quickbooks Online Tutorial for Beginners 2019 - How to Handle Customer Overpayments

QBUniversity.org - In this Quickbooks Online tutorial for beginners 2019 I walk through how to handle customer overpayments.
Sometimes, when you give an invoice to a customer, they overpay on accident. Quickbooks Online will automatically create a credit on the customers account. However, sometimes the customer wants a refund of that overpayment.
This video tutorial walks you through how to issue the refund and link the refund to the overpayment in Quickbooks Online.
Discover the 3 common mistakes made in Quickbooks Online and how to avoid them at QBUniversity.org

[@kylekarcher6076]

Finally --- a video on the exact scenario that i was looking for that makes sense and is super easy. thank you

[@QbuniversityOrg]

You’re welcome!

[@kimberlymetko9605]

I'm new to the online version of QB, but I'm an old pro at the desktop. First, I really miss the simplicity of the desktop version, but I have to say, your videos have been super helpful and easy to follow. Thank you!

[@QbuniversityOrg]

Kimberly Metko Thank you so much, and you’re welcome!

[@doc13067]

Hugely helpful. As an electrician receiving excess payments I could never figure out how to go about giving their money back and drawing from the credits shown under the client's account. Thank you very much!

[@QbuniversityOrg]

You’re welcome!

[@anjalikabrawala2815]

what actually you did explain in accounting language i didn't understand....moreover I'm new in QB online.....hope I get my Ans asap. Thanks

[@brandonramsay8844]

What if they tipped me when paying with credit online? Why isn't there an option for clients to just tip. Quickbooks keeps taking the tips and using them towards their next invoice which is ridiculous

[@QbuniversityOrg]

What kind of business do you run?

[@barbaracovey]

Thanks for showing. Doesn’t show quickbooks in a good light in that they can’t be bothered to have a less complex way to do a partial refund. 🙃

[@QbuniversityOrg]

Robin95 yep I agree. Although they keep improving it so hopefully they’ll fix it at some point.

[@liyongpeng1173]

Thanks for showing, and I have a question. In your case, the customer gives the rest of the money(CAD $100) as tips to your company, how to handle this situation(make open-balance as zero)?

[@QbuniversityOrg]

Li Yongpeng if they pay you over and above the invoice amount this is additional income to you. Personally i would overpay the invoice to create a credit then create a sales receipt for the extra and apply the credit

[@liyongpeng1173]

@@QbuniversityOrg Thanks for your help. I am learning Quickbook right now, and your video is helpful to me.

[@QbuniversityOrg]

Li Yongpeng great to hear!

[@liyongpeng1173]

@@QbuniversityOrg Hello, it is me again. I cannot find my question on your videos, so I have to make a question again. I matched a wrong cheque number with a person payroll, and I cannot cancel in the account history in QuickBooks online

[@QbuniversityOrg]

Li Yongpeng Are you able to go in and simply change the check number

[@thegreatrest-exslave-slave9450]

Thank you. 'Cheque' command very confusing for British users of your software, we rarely deal in cheques, everything by BACS here,

[@QbuniversityOrg]

Last Slave Standing understood. Thanks for the feedback!

[@LisaBridge]

Ok my customer paid twice for an invoice and said keep the money and take it off the next bill. So I receive the money to their account as Unapplied cash payment income. However, when i go into their account there is no balance showing and the money is not on their account. What did i not do?

[@QbuniversityOrg]

I would go to the original invoice and show the full amount paid. Then QB will ask if you want to keep it as a credit and choose yes

[@Cbrian84]

I'm using Quickbooks online. Question, I have a customer who I invoiced him for $40. He paid me $50 and stated the extra $10 is a tip. How can I receive the credit as it's currently on his account as a credit?

[@QbuniversityOrg]

Just create another small $10 invoice and apply the credit to it

[@candyfromtexas6855]

Our A/R person issued a check back to our customer for a refund, then did an Invoice to match it up to clear the balance off the account. What is the impact of what she did?

[@QbuniversityOrg]

Candy From Texas was there an overpayment from the customer that was refunded or was it a credit you gave them for something so you refunded it?

[@candyfromtexas6855]

@@QbuniversityOrg Thank you for your quick response. The refund was for a duplicate payment that was deposited. Check and Invoice coded to Misc-Other, acct 3502.

[@QbuniversityOrg]

Candy From Texas gotcha. So if the duplicate payment was deposited and put to this account, then the check written would also go to this account. The amounts would wash and have no effect on the financials

[@candyfromtexas6855]

@@QbuniversityOrg Ok, I kind of thought that but then I am a little confused about when the Undeposted Funds (acct 1490 in our case) is used. I am new to Quickbooks and bookkeeping, can you tell? lol

[@QbuniversityOrg]

Candy From Texas no worries!

[@camilleburgher2700]

What if the customer needs a credit note? This is for there records.

[@QbuniversityOrg]

Like a credit memo? You can go in and print or email one for them

[@camilleburgher2700]

@@QbuniversityOrg yes. Ok so a customer paid for an invoice twice but that invoice was paid last year so the account is zero, then they paid this year and there is no invoice to apply the payment but they need a credit memo. If I create the credit memo, it won't allow me to put the money to the bank received but instead the product/service.

[@camilleburgher2700]

@@QbuniversityOrg I posted it as a received payment without an invoice that created a credit but the need a credit memo and I just can't seems how to create it as what will be the product/service and wouldn't that create a double credit on the account.

[@QbuniversityOrg]

@@camilleburgher2700 did you book it as Receive Payment against the customer?

[@QbuniversityOrg]

@@camilleburgher2700 ah gotcha, disregard my previous reply then. Unfortunately in this case you cannot turn an overpayment into a credit memo. And don’t also do a credit memo because you will double the credit. The “workaround” is to send the customer a statement showing them that they have an overpayment on their account

[@rociorodriguez7799]

I followed the steps per your tutorial, I'm not sure why the overpayment is showing as a unapplied cash payment income on the P&L Quickbooks Online is more complex the the desktop version for these types of transactions. What am I doing wrong?

[@QbuniversityOrg]

Check your date range on the PL. is the date you made the change in the date range of the PL?

[@rociorodriguez7799]

@@QbuniversityOrg Thank you for your quick response. This client is on a cash basis. the duplicate payment was applied in 2021 and the refund was issued this year 2022. I hope this helps.