Hello there, @alexchalker04-ho. Let me help you sort out why your invoice says the money has been deposited while creating one in QuickBooks Online (QBO).
Based on your description, it seems that your credit note auto-apply feature is enabled. Then, your customer may have an outstanding credit that's why it automatically applied to the invoice you've created. To check, let's visit the Account and Settings page and turn off the said feature if you want to decide which open invoices you want to apply credit notes to.
I would encourage you to sort this out through a web browser. This is because most of the features can be managed using it and not on the app. To do this, here's how:
- Go to the Gear icon.
- Select Account and settings.
- Choose the Advanced menu.
- Click anywhere in the Automation section to open its content.
- Disable the Automatically apply credits option.
- Click Save.
Then, visit the customer's account to check if they have available credit. To do this, go to the Customers tab from the Sales menu. From there, Filter their transaction to only display credit note transactions. Please see the screenshot below for your reference.
![80.PNG 80.PNG](https://quickbooks.intuit.com/learn-support/image/serverpage/image-id/81848i5033DB8D8DE5A26D/image-size/large?v=v2&px=999)
In case your customer doesn't have available credits and the Automatically apply credits option is already turned off, but the issue persists, I would encourage you to perform some troubleshooting steps. This is because most damaged webpage data causes issues while creating invoices in QBO. Please refer to this article for the detailed steps: Clear cache and cookies to fix issues when using QuickBooks Online.
Also, you may want to check out one of our Help pages where you can get further assistance in case you need one in managing your income and sales transactions using QBO: Company's income and customers help for QuickBooks Online. It includes topics about payments, refunds and credits, and customizing sales forms, to name a few.
Keep me posted if there's anything else you need or concerns about managing your invoices in QBO. I'll gladly help. Take care, and have a great day, @alexchalker04-ho.