Explaining Indirect edit by System to Client.

I can explain how this happens with the QuickBooks system, @JS126. Let's discuss this properly so you can clarify it with your client and gain a clear understanding.

QuickBooks has an advanced feature that allows you to automatically apply customer credits to open invoices and mark them as paid. This is the reason why the system automatically applied a payment to your client's invoice.

For example, if your customer has an overpayment from the previously paid invoice, the overpaid amount will become a negative amount on the customer's open balance and serve as credits.

Once you create another invoice for that specific customer, the credits will automatically apply to the invoice and mark it as paid.

To locate this feature, kindly follow these steps:

1. Go to the Settings icon and select Account and Settings.
   
   
    
2. Select the Advanced tab.
3. In the Automation section, click on the Edit icon.
4. Check the option Automatically apply credits. If you want to turn it off, you can toggle it.
   
   
    
5. Click Save, then Done.

Furthermore, learn how to run aging reports that provide an overview of your customer's outstanding balances: Run an accounts receivable aging report.

Did you know that we provide comprehensive guidance about exploring the QuickBooks dashboard and what specific report you should look at for better financial understanding? Our QuickBooks Live Expert Assisted is here to walk you through every step, ensuring you gain clarity and navigate QuickBooks functionalities with confidence.

I'm glad you reached out for clarification, and it's a pleasure to explain everything clearly. If you have further questions about managing invoices or any other concerns, I'm here to help.