Applying a credit memo to an invoice that has autopay setup

Hello there, Chris. Let me provide you steps when using credit memo to an open invoice here in QuickBooks Online. 

There are possible ways why the credit memo wasn't applied as expected. 

When we turn on the settings to automatically apply a credit memo to an invoice, it'll apply credits to the oldest open invoices for the same customer.

However, we have an option to remove auto-applied credits from an invoice.

Here's how:

1. Choose the invoice with the applied credits. 
2. Select the blue hyperlink of the credit applied, then select the date. The payment transaction will open.
3. Select More, then click Delete.

On the other hand, we can turn off the automated credit memo and manually apply the credit to an open invoice. You may check for this article and learn how and when to give a credit memo or delayed credit: Create and apply credit memos or delayed credits in QuickBooks Online.

Additionally, this article will help you on how we can personalize and add specific info to your sales forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.

Please don't hesitate to reply to this thread should you need additional assistance applying your credit memo and any QuickBooks-related queries. Stay safe.

Hey there!

I think you may be a bit confused.

I’ll restate the issue:

•Create credit memo

•Automatically apply credits setting is on

•Credit applies to new recurring invoice

•Invoice balance is reduced

•Invoice is overpaid by autopay

•A new credit is created

The issue is autopay is paying the invoice total regardless of the credit applied to the invoice. The customer’s transaction history shows exactly what happened. There’s a note on the transaction where the credit was applied and a note that the customer overpaid the invoice (which was done by the autopay system).

Hey! I like autopay. It’s great! But it’s odd that it won’t function as one would think regarding credits.

I appreciate the additional information, Chris.

I can see how challenging it can be to encounter such issues. I'm here to help and guide you to the right channel that can address your concerns on time.

Situations like this one need special handling and in-depth troubleshooting to pinpoint the cause of the issue. We always prioritize the security of our customers' data, so I suggest contacting our QuickBooks Payments Support Team. 

They're going to review your account settings and sales transactions. Our specialists will provide a detailed explanation of why Autopay paid the total invoice amount even with a credit applied. Then, walk you through the process of applying a permanent fix once it's ready.

On the other hand, you can consider turning off the Automatically apply credits feature so you can decide which open invoices you want to apply credit memos to. Here's how:

1. In your QBO company, head to the Gear icon ⚙ and choose Account and settings. 
2. Go to the Advanced tab and click the Pencil icon for Automation. 
3. In the Automatically apply credits section, move the slider to the left to disable the function. 
4. Click Save and Done.

You'll find in-depth information on when to issue a credit memo or delayed credit to customers, as well as instructions for removing auto-applied credits from invoices through this link: Create and apply credit memos or delayed credits in QuickBooks Online. 

In the following resources, you'll get answers to frequently asked questions about AutoPay, ways to manage your recurring entries, and handle various payment-related activities:

• Set up Autopay for recurring invoices in QuickBooks Online
• Review your recurring transactions in QuickBooks Online
• QuickBooks Payments FAQ.

Feel free to tag me in your reply for any additional questions about applying the credit memo to your invoices and other QuickBooks-related tasks. I'll get back to make sure everything is taken care of for you. Have a good one, Chris.