Unapplied Credit Note - Can't resolve

I got these covered for you, @Dnallov.

The credit note remained unapplied because the amount of the invoice does not match it. To fix this, you can create a cheque for the amount part of the service.

Here's how:

1. Select the Plus icon, and then click Cheque.
2. Input the customer's name.
3. Choose the Payment Account.
4. Under Category details, select Accounts Receivable.
5. Enter the amount that you need to refund.
6. Click Save and close.

Once done, you'll have to zero out the amount by applying the check to the invoice payment and credit note. Let me show you how:

1. Select the Plus icon.
2. Under Customers, choose Receive Payment.
3. Enter the customer's name.
4. Under Outstanding Transactions, check the box for Cheque Expense.
5. Under Credits, check the box for Adjustment Note.
6. Notice the amount at the top is zero.
7. Select Save and close.
8. Go back to the transaction list to see that the credit note's status is closed.

Additionally, I would highly recommend that you consult an accountant. They might have other ways to record this transaction in QBO.

I'm also sharing this link to guide you on how and when to give a credit note or delayed credit to customers.

If there's a question that you want to ask about unapplied credits, please feel free to do so. I'll be here to answer them for you. Keep safe!