Automatic payment allocation

Yes, there's a way to automatically apply payments to an invoice in QuickBooks Online (QBO), iamgavinjones.

Thank you for the screenshot. You don't need to create a rule for the deposit to automatically apply to the invoice.

QBO has an automation feature where you can automatically apply payments to an open invoice. This option can be turned on in the Account and Settings section.

Here's how:
 

1. Go to the Gear icon.
2. Choose Account and Settings.
3. Select Advanced on the left of the screen.
4. Click the Pencil icon in Automation.
5. Mark the Automatically apply credits box.
   
6. Click Save, then Done.

If these payments are creating an overpayment, I recommend the following article which contains steps for what to do: Apply A Credit From An Overpayment.

QuickBooks estimates and invoices are improving. Check out this link to learn about the latest update: See what’s new with estimates and invoices in QuickBooks Online. The workflow for these forms will look different depending on whether you have the old or the new version of estimates and invoices.
 

Let me know if you have other concerns aside from applying payments to invoices. I'll be right here to help you.

Hi MaryLandT,

THANK you so much for taking the time to respond, I've had a look at your suggestion an I can't seem to find the setting. My layout looks different to yours.

Please see attached screenshot 

Hello, Gavin Jones. 

Thanks for your reply, and I appreciate the screenshot for clearer picture on what's going on. I'll give some details about the Automatically apply credits option, and how you can take care of those deposits and invoices. 

Just to clarify what the Automatically apply credits option will do, it only works on future invoices. For example, if the deposit was automatically categorised before the invoice was created, then the option will take effect (right after the invoice was created). 

The option won't work for existing invoices, so we're unable to automatically apply those deposits. Though, you'll want to continue manually linking and recording those payments. 

To make it easier, I'd recommend using the Receive payments option (go to the + New button, then select Receive payments). Just select your customer, then check the invoices and the deposits to link them together. 

Regarding the missing option, I double-checked the setting on my sample company, and it is still there. It looks like something is preventing it from appearing on your end.

If you want to use the option for future transactions, I'd recommend contacting our support. They can check on your account and investigate what's preventing the system from showing the option.

Here's how to reach them: 

1. Click the Help icon.
2. Select Talk to a human (or type it in the chat box).
3. When asked, enter "Automatically apply credits is missing " in the chat box. 
4. Choose I still need a human.
5. Click the Get help from a human link.
6. Select either the phone or chat option. 

If you need help with your bank account reconciliation in the future, feel free to use this article: Reconcile an account in QuickBooks Online.

I still encourage you to reply here if you have any other concerns with your customer transactions (or any other processes in QuickBooks). I'm always here to help.  

Hi. So I have "Automatically apply credits" selected, but it doesn't seem to be working. My invoices and payments are coming in automatically through an interface from the program Teachworks, if that matters.  Please advise. That's not a setting that only works in a higher version of QB, is it? 

Hi there, meldeiry.

Thanks for joining this thread. I want to make sure you're able to use the automatic apply credit feature in your QuickBooks Online account.

You mentioned this feature has been selected in your settings but not working properly. To rule out any browser related issues, I recommend first clearing the cache. The cache is used to collect frequently used data to make loading web pages quicker and easier. If the cache becomes too full it can cause viewing and performance errors within the system. Clearing it will remove anything preventing the system from operating properly. Here's how to get this done in Chrome for example:

1. Click the three vertical dots in the top right corner.
2. Select More Tools, then Clear Browsing Data.
3. Change the time range to All Time.
4. Only check Cached images and files.
5. Click Clear data.

The following article provides similar steps for other browsers: Clear cache and cookies to fix issues when using QuickBooks Online

Give this a try and the credit function should start working. Please don't hesitate to reach back out if you have any other questions.

Hi Morgan, 

I tried this and unfortunately, it doesn't seem to have worked. What else can I try? Or can someone look at my account? Thanks. 

Hello, meldeiry.

Thanks for getting back to us. Allow me to jump in and help ensure this is taken care of for you.

Since the issue persists after following the steps shared by my colleague above, I highly suggest contacting our Support team. They have tools such as screen-sharing (remote access) that can pull up your account in a secure environment and check the cause of this odd behavior. They can also perform other troubleshooting steps if necessary.

Here's how to reach them:

1. In QuickBooks Online (QBO), click the Help (question mark) icon at the top right.
2. Select a suggested option, or type a question or topic you need help with.
3. Tick Contact Us, type a question, and Continue.
4. Choose a way to connect with us.

For more tips and other resources, I recommend visiting our website for future reference: Self-help articles.

Please post again in the Community or leave a comment in this thread if you have additional questions about this or anything else QuickBooks. I'm more than willing to answer them. Stay safe.

I have seen this answer for auto payments a number of times and I think it is false. The automatic credits is for credit memos, which are refunds. It does not work for payments.