How to repay overpaid

Hello there, @treasurer_gpfc.

Thank you for bringing this to our attention. I understand that an overpayment occurred, and I want to personally assure you that we are here to help resolve the matter as quickly as possible.

When an overpayment is recorded in QuickBooks, it is recognized as a credit on the customer's account. This credit will stay active until it is either applied to a future invoice or refunded to the customer.

To prevent this from happening, you can issue a refund to your customer for the overpayment using either a Cheque or an Expense transaction in QuickBooks. This process reduces your bank balance while clearing the customer's open credit, overpayment, or prepayment. Follow these steps to complete the refund:

1. Click the + New icon.
2. Select Expense or Cheque.
   
   
    
3. Pick the customer you want to refund from the Payee ▼ dropdown.
4. From the Payment Account ▼ dropdown, select the bank account where you deposited the overpayment.
5. On the first line of the Category column, select Accounts Receivable.
6. Enter how much you want to refund in the Amount field.
7. Fill out the other fields as you see fit, and Save and Close.

After that, link the refund to the customer's overpayment. Feel free to follow the steps below:

1. Go back to the + New and select Receive payment.
2. Choose the same customer you used for the cheque or expense when recording the refund.
3. Fill out the other fields as you see fit.
4. Under the Outstanding Transactions section, tick the box for the Expense or Cheque you created when recording the refund. If you have automation to apply bill payments turned on, this step is done for you.
5. Make sure the payment is the same as the open balance, then select Save and Close.

In case you have additional questions about handling invoice overpayments. We'll be happy to assist you. Thank you, and we hope you have a great day.