Applying a journal entry credit to an invoice is useful for times when you need to update an open invoice. But before you can do this, you need to create a journal entry using Accounts Receivable as the associated account, and select the customer's name from the Name column.
(Not sure how to create a journal entry? Check out this helpful article: How to create a journal entry in QuickBooks Online.)
Here's how to apply a journal entry as a credit to your customer's open invoice.
- Select + New.
- Select Receive Payment.
- Under Receive Payment, select the customer.
- Make no entry on the form.
- Under Outstanding Transactions, select the invoice.
- Under Credits, select the journal entry to be applied as a credit. (Note: The Credits section only appears if there is an unapplied customer credit. Make sure to record the journal entry correctly.)
- Select Save and close or Save and new.
Now you're able to easily apply a journal entry credit to an invoice.