How to Apply Over Payment in QuickBooks?

So you are wondering how to apply overpayment in QuickBooks? Well, you have landed yourself just in the right place. This article is all you need to know all about this topic. So let us begin!

When you get an overpayment in QuickBooks from your customer you can handle it in two ways:

  • You can apply the overpaid amount to the future invoice of the same customer.
  • You can generate a refund for the overpaid amount.

Ways how to apply overpayment in QuickBooks

This section of the article will inform you about the methods to apply the above two routes. Please make sure that you carefully follow the instructions in the right order as mentioned below.

Method 1: Ways to record the overpaid amount in the invoice of the customer

  • Launch QuickBooks on your computer.
  • Look for the option that says- ‘Create.’ You can find it on the upper right-hand side corner of your QuickBooks screen. It will be marked with a ‘+’ sign.
  • From the drop-down list please choose ‘Receive Payment.’
  • A new window for ‘Receive Payment’ will open. Here you need to choose the ‘Customer’ option.
  • Click on ‘Outstanding Transactions.’ This will open all the invoices that are outstanding.
  • Tick mark the invoice you wish to pay or in this case- ‘refund.’
  • Enter the correct amount you wish to pay to the customer in the ‘Amount received’ field.
  • Once satisfied with the inputs, please click on ‘Apply.’

Method 2: Ways to apply credits to an existing invoice

Whenever you receive any extra amount in addition to the invoice, QuickBooks by default generates a credit. You then can apply for this credit. Here are a few ways you can apply for the credit:

Applying credit to an existing invoice

  • Open the invoice to which you wish to apply the (overpaid amount) credit.
  • Click on ‘Receive payment’ option.
  • Click on ‘Outstanding Transactions.’ This will open all the invoices that are outstanding.
  • Check to mark the invoice/s you wish to pay or in this case- ‘refund.’
  • Enter the amount you wish to pay.
  • Click on ‘Save.’
  • Then close the window.

Applying credit to a new invoice:

To do this you need to first switch on the ‘Automatically apply credits preference. Here is how you can do it:

  • Click on ‘Settings’. It is marked with a ‘gear’ icon.
  • Then go to ‘Account and settings’ option.
  • Click on ‘Advanced.’
  • In the ‘Automation’ category, please click on the ’Pencil’ icon.
  • Here you will see the option that says- ‘Automatically apply for credits.’ Please check mark this option.
  • Click on ‘Save’ and then click on ‘Done.’

Now you can create an invoice. Due to the above changes, the overpayment or the credit will be automatically applied in the invoice as ‘payment upon saving.’

Applying for the credit as a tip:

Turn the ‘Automatically apply credits preference on as described in the above method. Then follow the following steps:

  • Create a new invoice.
  • Add a ‘tip’ item. Make sure the amount is the same as the credit or in this case- the overpaid amount.
  • Save the invoice.
  • The credits will be automatically applied as a tip.

We hope this article helped you to ‘apply overpayment in QuickBooks.’ In case you wish to discuss anything further with us or are seeking a customized assistance, you can reach us at For any issues, call QuickBooks Pro advisor Support Toll-free number ✆+1-800-796-0471.

 

Last modified: August 22, 2018
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