Thanks for attaching a screenshot, annmareepreston.
As I look into your screenshot, I've noticed that the account associated with the check was Total Cash and Cash Equivalent. This is the reason why there's an overpayment on your records. In creating a refund, we'll have to take note that we need to select Accounts Receivable as the account so that we'll be able to successfully offset the available credits.
We can simply edit the refund then choose AR as the account to fix this. I'll guide you how:
- Select Customers from the top menu bar.
- Choose Customer Center.
- Select the appropriate customer from the Customers & Jobs tab.
- In the Transactions tab, locate then double-click the check to open it.
- Select Account Receivable from the Accounts column.
- Click Save & Close, then choose Yes to confirm the changes.
I've added an article that will guide you in creating a credit memo or refund check in QuickBooks Desktop for Windows.
I also encourage checking out this link to know more about the AR account works in QuickBooks: Accounts Receivable workflows.
Do you have other questions in mind? Feel free to leave them below. I'll make sure to get back to you as quickly as I can.
