How to Manage Overpayments in Quickbooks

money-1459232_960_720Here’s a scenario to consider: you’re a business owner and a customer has overpaid you for a product or service. In situations such as this, it’s best to refund the difference, informing the customer of his or her mistake. Thankfully, Intuit’s Quickbooks accounting software makes handling this task a breeze. To learn more about when and how to manage overpayments in Quickbooks, keep reading.

Quickbooks actually has two different options for dealing with overpayments: you can either refund the difference to the customer, or you can apply the difference as a credit to the customer’s account. Both options are perfectly fine, although some business owners may prefer one over the other. In any case, we’re going to walk you through the steps of using both options.

To manage an overpayment, log into your Quickbooks account and select the “Receive Payment” icon. From here, enter the amount paid by the customer in the “Amount field.” You must now select the invoice that you wish to apply this amount to. This is done by clicking the checkmark in the left column next to the respective invoice.

After selecting the invoice, you should see a section titled “Overpayment,” which has two options listed: “Leave the Credit to be Applied Later,” and “Refund the Amount to the Customer.” These two options are pretty self-explanatory. Just the first option if you want to leave the overpayment as a credit to the customer’s account, or choose the second option if you wish to refund the overpayment to the customer.

Assuming you choose “Leave the Credit to be Applied Later,” the customer’s overpayment can either be applied to any old, outstanding invoice, or it can applied to a newly created invoice. When you create a new invoice for the customer, select “Apply Credit” at the top of the invoice, at which point you can choose the credit and confirm by pressing “OK.”

But if you choose “Refund the Amount to the Customer,” you can refund the customer’s overpayment in the form of a check. Select “Save and Close,” at which point a new Refund section should appear. Select the method that you wish to refund the customer’s overpayment and confirm by pressing “OK.” Congratulations, you’ve just handled an overpayment in Quickbooks!

Overpayments are bound to happen at some point in time, but as long as you use the Quickbooks accounting software you can handle them in a painless manner.

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