Issue Credit Memo to send to a customer

Thanks for sharing the details of your workflow, Teesa66. To reflect the payment received in the customer's profile, let's ensure we have associated the transaction with your client while categorizing it. Otherwise, we can correct it in the Categorized tab.

1. In the Bank transactions page, click the Categorized tab.
2. Locate and put a check mark on the payment transaction, then Edit.
3. Select the correct customer in the Vendor/Customer name dropdown.
4. Hit Save.
   
   

Please know that a categorized payment will not link to the invoice and record the exact amount of the payment (duplicate). Thus, creating a credit memo will result in a duplicate credit, as QuickBooks automatically generates a credit for the duplicate payment.

To handle this, we can Undo the categorization and Exclude the payment from the Bank transactions tab. Then, manually record a Receive payment. This ensures the credit is recorded accurately and allows you to create and send a Credit memo to your customer.

1. Find the payment transaction in the Categorized tab, then Undo.
2. Hover over the For review, then tick the box for the payment.
3. Press Exclude.
   
   

To further enhance your QuickBooks experience, our QuickBooks Live Expert Assisted team is here to guide you on the best practices for managing transactions and payments.

If you have further questions about managing invoices and duplicate payments, please don't hesitate to click the Reply button. I'm always here to help you with your concerns.

@Teesa66 

Make sure to match ACH payment #1 to the invoice.  If you don't, it won't appear under the customer's account; the invoice will remain unpaid, and you will duplicate your income.

To issue a credit memo for ACH payment #2, create a service product called 'Customer Overpayment'.  Under 'Income account', select the bank account where the payment was deposited.  That prevents the payment from being booked as income.  Add the newly-created Customer Overpayment product to a credit memo for the customer.  That creates a bank deposit and a customer credit for the amount of the overpayment.