The article addresses some of the most common scenarios and provides recommended solution for issues when receiving and applying payment towards invoices. If you need help with the standard process for creating invoices and receiving payments towards it, please refer to Accounts Receivable 101.
Follow these steps if you need to apply several payment methods (credit card, cash, check, etc... for an invoice.
If you set QuickBooks to automatically apply payments, your payments will be automatically posted to the oldest open invoice. Some businesses may not want payments posted in this order. Performing the following steps will re-apply payments to the correct invoices without affecting your reconciliation.
Note: If necessary you can edit the amount in the payment column by clicking on the amount and changing it.
To keep QuickBooks from automatically applying payments, you need to set your payments preference.
The following steps show how to create a customer credit from an existing deposit, and how to apply this credit to an open invoice. As this may change how accounts are affected, you should check with your accountant before following these steps, particularly if the payment was originally deposited in a closed period.
Use the following steps if your customer has sent in one payment to cover several invoices that are in different Accounts Receivable (A/R) accounts. Note that QuickBooks only allows one A/R account per Journal Entry, which is why we need to use a wash account when moving balances between A/R accounts.
Check transaction history so you can locate and edit the payment that was recorded as a full payment when it was actually a partial payment