Once i create a credit note why cant link to the overbill invoice?

I'll walk you through linking the credit note to an invoice, Erichon222-yahoo.

You can follow these steps:

1. Click the New or Plus sign (+) button.
2. Go to Receive payment.
3. Select the customer.
4. Select the Invoice under Outstanding Transactions, and the Credit Note under Credits.
5. Click Save and close.

You can also check this article for more information about credit notes: Create and apply credit notes or delayed credits in QuickBooks Online.

If you have more questions, don't hesitate to reach out to us again. We're available 24/7 to help you. Take care!

Say i have a credit note of $30, invoice to customer is $100, how do i apply the credit of $30 and bill customer only $70? i have been emailing the Credit Note and Invoice to customer separately and realised some customers do not bother and just pay what was invoice - eg $100. Thus resulting in i have quite a few unapplied Credit Notes.

Hello there, BlessedTT.

I'd like to help and make sure you apply the credits to your invoices.

You can still apply the credit even if your customer already receive and paid the invoice. I'll show you how:

1. Click on +New.
2. Choose Receive payment.
3. Select the customer, then the credit and the invoice.
4. Once done, select Save and New or Save and Close.

After you apply the credit to the invoice, you can either send the customer the refund amount or apply it to the next invoice.

Here's an article that you can use as your future reference: Record a customer refund in QuickBooks Online

Post your concerns or click the reply button for any follow-up questions about credits. I'll keep an eye on your response. Have a great day!

Hi Archie_B,

Thanks for your reply. My Question was how to apply the credits to the invoice before sending the Nett amount due to the customer - meaning new invoice =$100, credits = $30, nett invoice to be sent = $70 (so that customer will know this is the amount he needs to pay and not the original $100).

I found a way, but I found it inefficient:- 

1) create New Invoice $100 => click send later, save and close

2) issue credit note $30 => click send later, save and close

3) add + receive payment => choose customer => amount receive 0 => payment to invoice $30 => payment from Credit Note $30 => save and close

4) go bank to invoice outstanding invoice => send to customer $70 due

do you have a shorter method?

TIA :)

Thanks for getting back to us, @BlessedTT.

You're already on the right track! The steps you shared above are the only way to apply a credit note in QuickBooks Online (QBO). The ability to add it before sending the invoice is currently unavailable.

I can see how this option would be helpful for you, and I'll take note of this. Our Product Engineers are always looking for ideas to consider on how to improve QBO. In the meantime, I recommend visiting our Blog site. This is where we share recent happenings and future developments, such as updates to newly added features.

To learn more about applying and managing credit notes in QBO, consider checking out this article: Create and apply credit notes or delayed credits in QuickBooks Online.

Please know that I'm only a post away if you have any additional questions or concerns. I'll be happy to answer them. Have a great day!