Payments - Multiple customers and credit memos

I recognize the urgency of running reports for payroll to be sorted out, Akwegs.

You have made two posts in the Community space concerning your issue, and my colleague has already responded to this matter in a separate thread. Kindly follow this link to view the response: https://quickbooks.intuit.com/learn-support/en-us/payments/re-applying-one-payment-to-multiple-custo....

We remain available in the Community should you have any updates regarding the status of your refund request. Please take care.

@MsNorthPND18 

The response from your colleague doesn't address your customer's situation in any way.  Their response indicates that they lack understanding of how to handle a situation like this.

@akwegs 

First, you will need to move the $1,000 A/R credit from Customer C and split it between Customers 

A & B.  To do that, make a journal entry (JE) like this:

At this point, you can now receive two separate payments: one from Customer A and one from Customer B for $250 each ($750 invoice less $500 credit).  Deposit them to Undeposited Funds so you can combine them into one bank deposit for $500.

Finally, to close out the original credit memo for Customer C, you need to apply the $1,000 credit to the $1,000 "invoice" created by the JE to close them out.  The two offset so there's no deposit.  This final step removes them from your A/R aging reports.