Making an internal transaction in QBO

I'm glad to have you here today, @KatSc. Let's work this out to ensure the accuracy of transferring funds between accounts in your QuickBooks Online (QBO).

Before anything else, I'd like to ensure we're on the same page. Are you trying to apply a payment towards a company expense in QBO? If so, you'll want to make it billable to keep your records accurate in QBO. These are the steps:
 

1. Go to Gear icon, then select Account and settings.
2. Go to the Expenses tab.
3. From the Bills and expenses section, select Edit ✎.
4. Turn on Show Items table on expense and purchase forms, Track expenses and items by customer, Make expenses and items billable.
5. Bill payment terms.
6. Select Save.

For further guidelines, please see this page: Enter billable expenses in QuickBooks Online.

You can check the image below for visual guidance. 

However, if you're trying to transfer funds between your accounts in QBO, then the Transfer option is the perfect way to handle this, and it doesn't require you to Receive payment. For more details, please see this page: Transfer funds between accounts.

If you're referring to something else, feel free to provide more details so I can get back to you with needed information to help rectify this situation as soon as possible.

Additionally, I recommend visiting this article to help you manage bank transactions in QBO: Find, categorise, and edit transactions in QuickBooks Online.

I look forward to helping you again if you have additional questions related to QuickBooks. You can also comment below if you need further assistance with fund transferring in the program. Stay safe.

As mentioned earlier, the accounts I need to used don't show up under the transfer section so I can't use that. I have a customer that is due to receive a payment from us for something but they've asked if, instead of sending them the money, I can apply it towards something they want to pay for that we don't invoice (but that does have an account in the chart of accounts)

Thanks for replying to the thread, KatSc. We can create a refund transaction that will show as a credit to your customer and be used to pay for their open invoices. Allow me to provide the steps to achieve this.

Before we begin, I would like to confirm whether you are processing a refund for your customer. If that's the case, we can record it as a credit memo. Once this transaction is processed, you will be able to use the credit memo for future purchases. Here's how:

1. Go to +New and select Adjustment Note.
2. Choose the name in the Customer field.
3. Enter the Credit Memo Date, Amount, Tax, and Product/Service.
4. Hit Save and close.

However, if this isn't the case, we can use the Journal Entry instead. I recommend reaching out to your accountant for further guidance on this.

Additionally, you can check out this link to learn how to categorize your transactions in QuickBooks Online.

Let me know if you still have other concerns about your customer refunds. We'll be here to assist you as soon as possible. Take care always.

It's not a refund either. It's a payment for something they've done. Can the credit be applied to something without an invoice? We don't invoice for what they want it applied towards 

I'll have a look at the journal entry thing and see if that could do it. Thanks