Overdue invoice

Hello there, @cazza2886.

I'm here to provide details about managing overdue invoices in QuickBooks Online (QBO).

You can credit a credit note for the payment you receive from the debt collection agency. Then, apply it as a payment to your client's overdue invoice. The steps to do this are pretty quick and easy.

Here's how to create a credit note:

1. In QBO, go to the + New icon at the top left.
2. Select Credit note.
3. In the Customer dropdown, choose the customer's name.
4. Enter the necessary information. Tip: You can create a custom credit service item so you can quickly add it to credit notes as a single line item.
5. Once done, hit Save and close.

After that, here's how to apply it as a payment to the overdue invoice:

1. Go back to the + New icon.
2. Click Receive payment.
3. In the Customer dropdown, choose the customer.
4. In the Outstanding Transactions section, select the open invoice you want to apply the credit note to.
5. In the Credits section, tick the credit notes you want to apply.
6. For the open invoice in the Payment column, enter how much of the credit you want to apply.
7. Leave the Payment method, Reference no, Deposit to, and Amount received fields blank.
8. Fill out the rest of the form, including the Payment date.
9. Make sure the total is correct after applying the credit note.
10. Once done, hit Save and close.

To learn more about managing invoices and credit notes in QBO, consider checking out these articles:

• Create invoices in QuickBooks Online.
• Create and apply credit notes or delayed credits in QuickBooks Online.

You can also visit our website for more tips and other resources you can use in the future: Self-help articles.

Please let me know in the comment section below if you have follow-up questions about invoices or anything else QuickBooks. I'm always here to help. Stay safe.