How to offset 2 journal entries? I recorded a journal entry instead of an invoice and I cannot apply payment against that journal entry.

Hello there, @sged1. 

I can see that it can be tricky when you accidentally record a journal entry instead of an invoice, especially when it comes to receiving payments. 

Here are a couple options I'd recommend to properly offset those two journal entries. 

You can delete the original journal entry that was recorded incorrectly. Then, create a proper invoice for the customer, using the same details as the journal entry.

To delete an invoice, follow these steps:
 

1. In the Sales tab, select Invoices.
2. Locate the customer.
3. In the Action dropdown, click Delete. (Note: You can also delete invoices by batch. By ticking the boxes next to the Date, then click the Batch action and select Delete.)

4. Then select Yes.
 

Once done, you can now recreate the deleted invoices.

This will allow you to receive the payment against the invoice, which is the standard workflow.

If deleting the original journal entry is not an option, you can still receive the payment, but you'll need to do so against the journal entry. Ensure the journal entry was recorded to an Accounts Receivable account, and the customer's name was included. When receiving the payment, apply it directly to the journal entry line item. This will effectively offset the original journal entry and properly record the cash receipt.

If you're unfamiliar with the process, you may consult an accounting professional before trying this. 
 

I've also included this article to learn how to enter a prior balance for a customer that owes you money or a vendor you need to pay: Manage outstanding balances for customers and vendors in QuickBooks Online.

Furthermore, you can check out this article to learn how to reconcile accounts so they match your bank and credit card statements in QBO: Reconcile an account in QuickBooks Online.

Feel free to click Reply if you have other concerns regarding JE or any QuickBooks-related concerns. We're here to lend a hand. Keep safe.