Does QuickBooks auto apply credit notes to a new invoice in future if there is no open invoice assuming auto apply settings is ON

Hi there, info672!

Yes, you're right. The credit note will automatically apply as payment to future invoices. You can actually try this on your end by creating a dummy invoice to see how this goes. Just make sure to not email the invoice to your customer to avoid confusion.

If you also want to unlink the credit note from the invoice, just click the 1 payment in blue text below the PAID status of the invoice page. Then, select the date to open the Receive Payment page, and then deselect the invoice.

If you have more questions about how auto-apply credits works, just let us know.