How do you allocate a deposit for a refund of an overpayment to a supplier account?

Thanks for dropping by the Community space, Georgie3.

 If the overpayment has been recorded properly, you can create a bank deposit to link the refund to the supplier's credit using Pay Bills. Let me guide you through the process.

First, deposit the money you got from the supplier. Here's how:

1. Select Create and click Bank deposit.
2. In the Account dropdown, select the account where you got the refund.
3. In the Add funds to this deposit section, select the supplier who gave you a refund.
4. In the Account section,  select the Creditors account so you can tie the refund to the supplier's credit.
5. Enter the payment method your supplier used to refund you, and the amount
6. Select Save and close.
   
   

After that, you can use Pay Bills to connect the bank deposit to the supplier credit. Here's how:

1. Select Create and click Pay bills.
2. Select the bank deposit you just created. You’ll see the amount of the supplier's credit in the Credit Applied field. The TOTAL PAYMENT AMOUNT should be GBP £ 0.00.
3. Select Save and close.

For more detailed instructions, you can refer to this article: Handle supplier refunds and credits in QuickBooks Online.

If you have further questions or need additional assistance, feel free to let us know. We’re here to help.