I needed to refund a security deposit for a client who paid it along with the balance due. For simplicity, say the customer is XXX, the full payment was $500, which was deposited in account ZZZ, and the security deposit portion was $100. Here's what I have done:
1. I issued a $100 partial payment through the Merchant Center for XXX because I don't have her credit card details and thus, reversal is the only method I know to easily refund the money. I previously tried the refund through the payment record (All Sales), but that appears to be all or nothing; I'm not given an option there for a partial refund.
2. I created a journal entry allocating the $100 from A/R to Security Deposit (categorized as Other Current Liability).
3. I created a Refund Receipt from the bank account ZZZ where the full payment was deposited, and the payment method was one I created called "Reversal" and I just chose to be printed under the check number.
4. All of that seems to have worked, BUT the journal entry allocating the security deposit to Security Deposit now shows "Overdue." I've tried creating a Receive Payment entry for XXX of $100, which makes "Overdue" appear as "Paid", but it also adds an addition $100 to ZZZ, which isn't right either.
What should I do to avoid "Overdue" while keeping the balances as they should be.
I would very much appreciate a personal reply, rather than linking or copy/pasting from a tutorial. I have read every tutorial out there and used every AI chatbox to find the answer, and nothing has worked for me.
