One of our clients reported the following:

One of our members paid an invoice twice by credit card.  The overpayment is recorded in their account as an unapplied payment.

I was able to refund the overpayment to the member by reversing the duplicate transaction in the Intuit Merchant Center.  The money has gone back to the member and has been deducted from our bank account, but the credits are still on the member account and the bank transaction does not match QuickBooks Online. 

What should I do to get the credits off the member record and get the cash out of the bank account in QuickBooks?

Here's the solution:

It turns out to be a two-step process:

  1. Create an invoice in the amount of the overpayment.  You can use an existing product code or create one specifically for events like this. The overpayment should auto-apply to the new invoice, thereby removing the credit balance from the customer record;

  2. Create a refund receipt, using the same product code used to create the invoice in step 1. This transaction will show as a refund on the customer record and will create the offsetting credit to the appropriate cash account.

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