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81 helpful votes

Apply a credit from an overpayment

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

  1. Find and open the invoice you want to apply the credit to.
  2. Select Receive payment.
  3. Under Outstanding Transactions, select all invoices that you want to apply the credit to.
  4. Scroll down, then select the credit that you want to apply on the invoice(s).
  5. Select Save and close

Apply credit to a new invoice

Automatically apply credits to a new invoice
  1. Turn on the Automatically apply credits preference.
    1. Select the Gear icon at the top, then Account and Settings.
    2. Select Advanced.
    3. Select the Pencil icon in the Automation section.
    4. Check the box before Automatically apply credits.
    5. Select Save, then Done.
      Note: The Automatically apply credits option only applies credits to invoices. It does not automatically apply vendor credits to bills.
  2. Create the invoice. The credits will be automatically applied as payment upon saving the invoice.
Apply credit as a tip
  1. Follow the steps above to create an invoice and add a "tip" item for with the same amount as the credit.
  2. (Optional) Create a "tip revenue" income account if you haven't already.
  3. The credits will be automatically applied as a tip upon saving the invoice.

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