When I'm selecting add payment it is now saying unallocated and is not taking the amount off the invoice even though I'm selecting add payment within the invoice itself.

Hello skinnsoul,

Welcome to the QuickBooks Community! Thanks for joining us. I appreciate the details you've shared with me here about the steps you're taking to record an invoice payment in QuickBooks Online. It's important to me that the payment is recording correctly so that you don't have to worry about unallocated payments floating around your books. I'm here to help.

With what you've described, it sounds like you're trying to record a partial payment to the invoice, and clicking the Receive payment button right on the invoice should do the trick to get you to where you can do so. Another thing you can try though is exiting out of the invoice and clicking the +New button, then Receive payment to see if that works out better or if it still leaves the payment unallocated. Here's an article that goes over this option, including for partial payments: Record invoice payments in QuickBooks Online

If that works out, awesome! You can go ahead and delete the unallocated payment already created so that you don't have to worry about it. Here's how: 

Void or delete transactions in QuickBooks Online. It could just mean there's a glitch with the Receive payment button directly on the invoice, and you can take troubleshooting steps like clearing the browser's cache, using a private browser, or using a different browser type to see if the same thing occurs.

In the event it does or you're running into a situation where even the Receive payment feature through the +New button is creating unallocated payments, it'll help us to take a closer look at this with you to figure out what's happening and how to resolve it. So we can do that, please reach out using one of the following options.

Schedule a Callback or start a Chat: click (?)Help in the upper right in QuickBooks Online > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > click Let's Talk > choose Get a callback or Start a Chat.

Social Media: Facebook, Twitter, and Instagram.
Support hours are from Monday to Friday between 9 a.m. and 8 p.m. ET.

Don't hesitate to give us a shout!