Welcome back, @chessiecat32,

I can share some information about correcting overpayments in QuickBooks Online.

Before creating any correcting entries, I'd suggest consulting an accountant to help and guide how to record them and what accounts to use. Your accountant can provide more expert advice in dealing with this concern.

You can follow these steps to correct an overpayment for the Accounts Receivable account:

1. Click the Company menu.
2. Choose Make General Journal Entry.
3. In the Make General Journal Entries window, update the Date and Entry No fields if necessary.
4. Go to the Account field and select Accounts Receivable from the drop down list.
5. Add the amount under Debit column.
6. Tab to the Name column and select a Customer Name from the list.
7. Next, select the offset account and enter the amount on the Credit column.

To correct a vendor overpayment, perform these steps:

1. Tap the Company menu and select Make General Journal Entry.
2. In the Account column, select Accounts Payable.
3. Input the amount under Credit column.
4. In the Name column, pick a vendor name.
5. Go to the next line and key in the offset account and enter the amount under Debit column.

I've added here an article to guide you with the correction: Write off customer and vendor balances.

That should do it, @chessiecat32. Please let me know once you've tried the steps. I'll be more than happy to help if you need one. All the best!