If your customer pays an extra amount above an invoice total, QuickBooks Online automatically creates a credit. You can apply this credit to one of the following:
Apply credit to an existing invoice
- Find and open the invoice you want to apply the credit to.
- Select Receive payment.
- Under Outstanding Transactions, select all invoices that you want to apply the credit to.
- Scroll down, then select the credit that you want to apply on the invoice(s).
- Select Save and close
Apply credit to a new invoice
Automatically apply credits to a new invoice
- Turn on the Automatically apply credits preference.
- Select the Gear icon at the top, then Account and Settings.
- Select Advanced.
- Select the Pencil icon in the Automation section.
- Check the box before Automatically apply credits.
- Select Save, then Done.
Note: The Automatically apply credits option only applies credits to invoices. It does not automatically apply vendor credits to bills.
- Create the invoice. The credits will be automatically applied as payment upon saving the invoice.
Apply credit as a tip
- Follow the steps above to create an invoice and add a "tip" item for with the same amount as the credit.
- (Optional) Create a "tip revenue" income account if you haven't already.
- The credits will be automatically applied as a tip upon saving the invoice.