Apply a journal entry credit to an invoice

You can apply a journal entry to reduce the amount a customer owes on an unpaid invoice. This process involves two main steps: creating the journal entry and then applying it to the invoice.

Before you start

To apply the credit, you need to:

1. Create a journal entry using Trade and other receivables account.
2. Select your customer’s name from the Name column on the journal entry. 

Apply the journal entry credit

1. Select + New or + Create.
2. Select Receive payment.
3. Select a customer.
4. Under Outstanding Transactions, select the invoice.
5. Under Credits, select the journal entry to apply it as a credit.
   Note: The Credits section only appears if there is an unapplied customer credit. Make sure to record the journal entry correctly.
6. Select Save and close.

Result

After saving, QuickBooks will apply the journal entry credit to the invoice, reducing the amount due. 

Related articles

• Create journal entries in QuickBooks Online and Intuit Enterprise Suite
• Transfer a credit from one customer to another