Hi, When I edit customer opening balances, it creates an invoice with a product code/service and not allocated to A/R. It assumes it as income.

Hello @craigoasis,

Let me help share how an opening balance of your customer is posted on your accounts in QuickBooks Online.

Normally, creating an opening balance of a customer will create an invoice. You're on the right track, one of the source accounts of the item used in the transaction is your income account.

But it'll also post the same amount of transaction in your accounts receivable account. To check, you can open the transaction journal of the opening balance to determine its source account. Let me show you how.

1. Go to Sales.
2. Select Customer.
3. Open the customer's profile with whom you've edited the opening balance.
4. On the list of transactions, select to open the transaction in question.
5. Select More.
6. Click Transaction Journal.

In the same manner, here's an article you can read to learn more about your customer's opening balance: Setting up a customer opening balance.

On top of that, I've also included this reference for a compilation of articles you can use while working with us: Manage Customers and Income for QuickBooks Online.

If there's anything else that I can help you with, please let me know in the comments sections below. I'll be here to lend a hand.