How do I handle over-payments received from imported payments?

You can manually apply an excess payment to your account as a credit balance, BRIAN-MURIITHI. This allows you to use it for future invoices or refunds.

Here’s how to do it:

1. Select + New.

2. Choose Receive Payment.

3. Select the customer associated with the overpayment.

4. Fill out the other fields as needed.

5. In the Outstanding Transaction section, check the box for the expense or check you created when recording the refund.  

6. Ensure the payment equals the open balance, then select Save and Close.

To issue a refund for a paid invoice, you can create a credit memo.

Quick Steps:

1. Click the + New button and select Credit Memo.

2. In the Customer drop-down menu, choose the customer's name.

3. Enter the necessary details.

4. Select Save and Close.

If the customer has a future invoice, you can apply this credit via Receive Payment to reduce the balance of that invoice.

Afterward, you can record the refund as an expense.

Here's the process:

1. Go to + New and select Expense.
2. Choose the customer in the Payee field and select the bank from which the refund will be issued.
3. In the Category field, select the Debtors account (Accounts Receivable).
4. Enter the refund amount in the Amount field.
5. In the Tax field, select the appropriate Tax (not inclusive/exclusive of tax) and hit Save.

Refer to this article for detailed instructions on recording a customer's overpayment in QBO: Record a customer refund in QuickBooks Online.

You can also check this article for help with categorising transactions in QBO: Categorise online bank transactions in QuickBooks Online.

If you have any other concerns, feel free to return to the Community for further assistance.