Welcome to QuickBooks Online (QBO), mnwaterskiier. Let's turn off the Automatically apply credits feature so you can decide which open invoices you want to apply credit memos to. We'll guide you through the process below.
When the Automatically apply credits feature is on, QuickBooks will automatically apply credits to the oldest open invoices for the same customer. We'll have to turn it off so you can choose what credit/s to relate to a specific sales form. To do this, here's how:
- Go to Settings, then select Account and settings.
- Select the Advanced tab.
- Select Edit ✎ in the Automation section.
- Turn off Automatically apply credits to decide which open invoices you want to apply credit memos to.
- Select Save, then Done.
Afterward, manually apply your credit memo to your invoices.
Additionally, you can create and customize accounts receivable aging reports in QBO to get an overview of your customers' outstanding balances, who are falling behind their payments, how much is still due, and how long they’re past due. You can check out this article to guide you through the process: Accounts Receivable Aging Summary Report.
Keep us updated on this thread if you have additional questions about managing credit memos in QBO. We can always lend a hand.
