Overpaid invoices are not showing as a credit; they are showing that the client still owes money! Why is that? How do I fix this?

Overpayments in QuickBooks Online are automatically recorded as available credits under Unapplied Payment, Dramy. This process can then be applied to your customer’s future invoices.

For transactions where the client still owes money, the $15 payment may have been applied to the wrong customer or invoice, leaving the $14 invoice unpaid. To help resolve this, locate the payment entry created and make sure you’ve recorded the amount to the correct customer invoice.

Once applied, the $14 invoice will show as Paid, and the remaining $1 will be recorded as a credit. Then, a -$1 open balance will reflect under the Financial Summary section on the customer’s profile.

Once done, you can apply the available credits to your customer’s future invoicing. To do this:

1. Navigate to the + Create icon and select Receive payment.
2. Choose the customer. Then, select the invoice and apply the credit.
3. Click Save and close.

I’ll leave this forum open for any additional queries.