Thanks for joining the thread, @Ellie92.
I'll help you handle customer's overpayments in QuickBooks Online.
We can record the transaction using a Cheque or Expense. Thus, it offsets the credit balance that is shown in QBO. Once you're ready, here's how you can do it:
- Click +New, then choose Expense.
- Select the customer you want to refund from the Payee ▼ dropdown.
- Choose the bank account you want the overpayment deposited to from the Payment account ▼ dropdown.
- On the first line of the Category column, select Debtors (Accounts receivable).
- From the VAT field, select No VAT.
- Enter how much you want to refund in the Amount field.
- Fill out the other fields as you see fit, then select Save and close.
Once done, you can follow Step 2 from this article to link the refund to the customer's credit: Record a customer refund in QuickBooks Online.
If you want to make a credit into a tip, feel free to visit this resource: Record an invoice overpayment as a tip.
If you have more questions about customer transactions in QBO, I'd be glad to lend a helping hand. Take care always, and happy holidays.
