Fix a payment applied to the wrong invoice in QuickBooks Online

If you received a payment against the wrong invoice and now want to apply it to the correct one, create a journal entry, then apply the payment to the correct invoice.

For a better experience, open this article in QuickBooks Online. Launch side-by-side view .

Step 1: Create a journal entry

Follow the steps to create a journal entry.

On the first line, enter the following:

• Account: Accounts Receivable
• Debits: amount of payment to transfer
• Name: name of the customer you’re transferring payment from

On the second line:

• Account: Accounts Receivable
• Credits: amount of payment to transfer
• Name: name of the customer you’re transferring payment to

Select Save and close.

Step 2: Apply the payment to the correct invoice

1. Select + New.
2. Select Receive payment.
3. Select the name of the customer.
4. In the Credits section, make sure the journal entry number and open balance amount are listed and checked.
5. Select Save and close.