1. Go to the vendor check-writing feature in QuickBooks Online.

2. Choose the customer name as the Payee name.

3. Choose “Accounts Receivable” as the Category.

4. Type in the overpayment amount to be refunded.

5. Click on “Save and Close”.

6. Next, go to the customer profile to actually apply this check payment refund to the previous customer overpayment.

a. Some things to notice here first:

i. You will notice the customer AR balance within the profile is now net-zeroed out.

ii. You will also notice, within a company-wide AR detail report, the amount of the check payment refund is still separately listed as a positive entry while the previous customer overpayment is still also separately listed as a negative entry. This is because the check payment refund still needs to be applied to the customer overpayment to effectively clear out everything from AR reporting (not just net-zero the customer profile).

b. So, let’s now apply the check payment refund to the customer overpayment:

i. From within the customer profile: Click on the actual customer payment; the one in which is the overpayment.

ii. You will notice the Amount Received at the top does not equal the total payment amounts (Amount to Apply total) on the right side below. Simply just checkmark your check payment refund on the left side; and now you will notice the Amount Received does indeed equal the Amount to Apply total; in addition, you will notice the Amount to Credit is now zero.

iii. Click on Save and Close.

7. To verify you did everything right, just process a company-wide AR detail report and those previous entries for the customer overpayment and the check payment refund should no longer be there.

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