Question

Customer over paid, issued credit but still unapplied?

Hi,

A customer paid an invoice twice, albeit the second payment was for an incorrect amount.

They asked for a credit note as they will allocate to a future invoice and pay the difference.

I sent a credit note, they paid the balance of the new invoice minus the credit amount.

I am now confused as to how I allocate the original over payment and how to apply the credit.

I tried a few things but I am going wrong.

I applied the overpayment say £100 to the new invoice £150 then applied the balance paid £50 to the new invoice.

That leaves the credit unapplied.

Please tell me where I am going wrong. I have gone back and undone the changes.

The unapplied credit you're seeing is correct, Rafiq.

All you need to do is use apply the credit to the new invoice. Here's how:

Go to Sales, then Customers.
Open the customer's account, then go to the Transaction List tab.
The customer's entries should look like this.
Use the + New function, then Receive payment to link the overpayment to the invoice.
Mark the outstanding invoice and the credit. Make sure to leave the Amount received as 0.
Click Save and close.

Now, you can click the Receive payment from the customer's account to record the remaining balance.

I'm adding this link to help you manage credits: Learn what to do in QuickBooks Online when a customer overpays you. It provides detailed steps on how to apply overpayments to future invoices.

Please get back to me if you have follow-up questions about allocating overpayments. I'm always right here to provide the steps for you.

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