Desktop version setting to automatically apply credits to invoices

Hello @barbr222,

As of the moment, there isn't an integrated way to automatically apply any available credits to your customer's open invoice. 

In the meantime, you can consider manually applying the credits to the corresponding invoices. To do so, you can create or open the invoice and click on the Apply Credits button.

Additionally, I've also included this helpful reference for a compilation of articles to help organize your customer transactions: Learn the different ways you can track customer transactions in QuickBooks Desktop.

If you have any other questions, please let me know by leaving any comments below. I'll be here to lend a hand. 

Not exactly automatic, but QB Desktop will lead you to do this as you record a credit memo.

When you record a credit memo, you're prompted with this message:

And if you choose the last option, then this window appears, with invoices pre-selected.  If the selection is correct, all you have to do is click Done:

So, it's almost automatic (at least it's very easy...)

Thanks so much, but what I am really hoping for is that when QB automatically creates monthly invoices, at that time existing credits would be automatically applied to those new invoices.   I was hoping to avoid having to manually go into each new invoice to apply existing credits.    Thanks for your response though.  I did get another response that  this feature is only available in QuickBooks online version, not in desktop.  :(

Thanks so much, but what I was really hoping for is this:  Each month I have QuickBooks automatically creating invoices.  When those invoices are automatically created, I was hoping that QB would automatically apply existing credits to the new invoices.  Instead I have to go into the new invoices each month to manually apply existing credits.   I was hoping to avoid that manual step.  Thanks for all the help though.  Great community!