Overpayment credits not showing as available

Hello there, cvan.

Though the jobs are under a client, transactions are still treated separately. If you received payment and used the overpayment as credit for the Client, you can only apply the available credit to that client and not on any of the jobs under it. However, if you received payment, then applied the credit to the client, and use it to pay on future invoices, you'll have the option to apply credits. 

Let me show you how: 

1. Open the invoice you'll want the credit to be applied to.
2. From the Invoice menu, click Apply Credits.
3. The Apply Credits window will appear which you can see and select the available credits. 
4. Click Done.

The invoice will now be fully or partially paid. You'll want to use these articles for more details in handling customer transactions: 

• Give your customer a credit or refund in QuickBooks Desktop for Windows
• Customize reports in QuickBooks Desktop

Let me know if you have other questions. Take care!

Hi Catherine,

I did apply the credit to the client.  The client has 2 jobs.  When I go to the client I see the invoices for the 2 different jobs/locations and the payment.  If I open any of the invoices no available credits appear.

Thanks for coming back, cvan.

I appreciate you for performing some troubleshooting to get this sorted out. We can run a Transaction History report to see if the payment or credit is posted to the invoice. If you set QuickBooks to automatically apply for payments, your payments will be automatically posted to the oldest open invoice. Here's how: 

1. Open the invoice that the payment shouldn't have been applied to.
2. Go to the Reports tab and select Transaction History.
3. In the Invoice Information, you'll see payments or credits link to the invoice.

If it is not applied to that invoice, try applying for the credits again by following the steps below.

1. Go to the Customers menu and select Receive Payments.
2. Select the transaction and click Apply Credits.
3. Hit Save & Close.

Check out the Record payment for an invoice article for more details. To keep QuickBooks from automatically applying for payments, we can set your payment preference.

1. From the Edit menu, select Preferences.
2. On the left pane, choose Payments then go to the Company Preferences tab.
3. On the Receive Payments section, check or uncheck the Automatically apply for payments as preferred.

If the same thing happens, let's try opening another company file to check if you're having a problem with only one file and not the program itself. Let me show you how:

1. In your QuickBooks, go to the File menu at the top left.
2. Choose Close Company.
3. In the No Company Open window, click the drop-down arrow in the Open a sample file icon.
4. Choose a sample file and click on it.

Then, try applying the credit to an invoice. If the same something happens, there may be a damaged data on the company file you've been working with. We can run the Rebuild Data tool is built-in to fix any company file data issues.  Just follow the steps and detail in his article: Fix data damage on your QuickBooks Desktop company file.

Feel free to visit our Sales and customers page for more insights about managing your company's income and customers.

Feel free to update us on the result of this troubleshooting in the comment below. I'd like to ensure this is resolved for you. You have a good one.

Sorry but this is not working.  No available credits will show up.  I think the problem lies with using the top tier client. 

Example:

Client ABC (Top Tier)

   Job 123 = invoice for $100

   Job 345 = invoice for $150

Receive payment of $350.  I Highlight 'Client ABC' (the top tier) and I see all the invoices.  I apply the payment and it says there is an overpayment to be saved.  If I create a new invoice for either Job 123 or Job 345 no available credits show up.

Example 2:

Client ABC

   Job 123 = invoice for $100

   Job 345 = invoice for $150

Receive payment of $350.  I split the payment.

I Highlight 'Job 123'.  I list $100 as the payment and apply it to 'Job 123'

Next, I Highlight 'Job 345' and list $250 as the payment and apply it to 'Job 345'.  It shows as an over payment of $100 and saved.

If I create another invoice for 'Job 345' the credits show up and I am able to apply them.  The problem is when I 'Select' the top tier client of 'Client ABC' and apply the payment to that and not to the individual jobs that the problem occurs, even though I am able to see all the invoices and payments when I select the top tier of 'Client ABC'.

I hope this explains my problem better.

Hello there, cvan.

When you select the top tier client (Client ABC), still, you'll need to apply the payment to the individual jobs. Payments can only be applied to the jobs since it is where you create the invoices. That is why you're seeing all invoices with jobs.

Since the jobs are linked to Client ABC, you can still apply the credit to it. When you create an invoice, you'll be asked to apply for the available credits. Still, I'd recommend following the steps shared by my colleague above. Create an invoice, and then select Apply Credits from the Invoice menu. Make sure to tick the credits you that need to apply for this invoice and then, Done.

If you want to give them a refund in the future, you can create a credit memo or a check. Let's take a look at this article to learn more: Give your customer a credit or refund in QuickBooks Desktop for Windows.

You can always go back here if you have other questions. Take care always and stay safe.

That is the problem.  When I click on 'apply credits' icon, it gives me a message that no credits are available.  You need to try the procedure I put in the example to see what is happening.

Thanks for getting back in here, @cvan.

Let me add some insights about applying credits to clients in QuickBooks Desktop. 

Normally, when you create credit, you have the option to apply this to an open invoice. If this is not the case on your part, let's check the customer where you record the credits. Also, this credit must not be applied to other customers. 

Here's how: 

1. Go to the Customers menu, and click Create Credit Memos/Refunds.
2. From the Customer:Job drop-down, choose your customer.
3. Enter the items you're giving credit for, then click Save & Close.
4. In the Available Credit window, select Apply to an invoice.
5. Select an invoice you want to apply this credit to.

For more information, feel free to check out this article: Give your customer a credit or refund in QuickBooks Desktop for Windows.

Furthermore, I'll be adding these articles to guide you handle customer payments in QBDT: 

• Record an invoice payment
• Void or refund customer payments in QuickBooks Desktop

Keep in touch with me here if you need further assistance. I always got your back. Thanks for coming to the Community and have a great day.

This did not work.  Here are a couple of snapshots of my screen

This is where I highlight the customer (AAA Customer) to apply the payment and create the credit memo.

Below shows the created Credit Memo.  It will not let me apply to any invoice.  I get the message that there are no open invoices.  Also, the $50 overpayment still shows up.  I think I give up.

I'm here to help fix this issue, cvan.

You'll receive this message "This customer has no open invoices" if you select the Apply to an invoice option upon saving the Credit Memo.

To fix this, delete and re-create the credit memo. Then, make sure to select the Retain as an available credit option.

Once done, open invoice to apply the overpayment. Here are the steps you can follow:

1. Locate and open the invoice.
2. Click Apply Credits.
3. Mark the overpayment.
   
4. Click Done.
5. Select Save & Close.

Learn more about this through this link: Give your customer a credit or refund in QuickBooks Desktop for Windows.

Stay in touch with me if you need anything else by commenting below. I'm always right here to help you.

Nope.  Does not work.  I get the message there are no credits available for this client.  Are you doing the steps as I posted.  I think this is not working because the payment is applied at the top tier while highlighting the AAA Customer and not the individual jobs.  From all the replies, it seems like there is not a fix for this issue.  

I appreciate the time for getting back to us, @cvan.

I can see that the workarounds provided by my colleagues didn't work. I'd suggest updating the QuickBooks Desktop program. This will fix any data-related issues which might be the cause why you're unable to apply the credits to the invoice.

I'll show you the way on how to update the program. You can refer to the steps below:

1. Go to the Help menu and select Update QuickBooks Desktop.
2. Click the Options tab and check the Mark All box.
3. Go to the Update Now tab and check the Reset Update box.
4. Select Get Updates. I've added some screenshots for your additional reference:

After you've successfully updated the program, restart it, and try to check if you can now successfully add credits to your  invoice. If you're still not able to do so, I'd recommend contacting our Customer Care team. They have the tools to perform screen sharing and help you get to the bottom of this.

You may also consider checking this article for your future task about tracking your business financials: Understand reports.

You're always welcome to post here again if you have other questions or concerns. I'm here to help.

Come on now!  You don't seem to understand the problem and just direct the customer to downloading updates.  I am having the same problem!  I have several credit memos for a customer but when I try to apply credit to an invoice, it shows zero available credits!  What's going on?

Let's make sure those credit memos are applied to the customer's invoices, SP58.

You need to check if those credit memos are categorized under Accounts Receivable. It will help you link them to invoices.

You can also check the payment preferences when receiving payments. There's an option to turn on automatic apply payments so the system will match it moving forward.

Here's how:

1. From the Edit menu, select Preferences.
2. On the left pane, select Payments then go to the Company Preferences tab.
3. On the Receive Payments section, check or uncheck the Automatically apply payments as preferred.

Once done, you can go back and check your transactions.

I'm adding this link for additional information: Resolve common issues when applying a payment towards an invoice.

Stay in touch with me if there's anything else you need in managing your transactions. I'll be around until you're able to apply credit memos to invoices.

It appears that support really ever gives a solution except for repeating scripted processes. Its December 28th 2021 and I am having this issue 9 months later than the OP

Hi,

Did you ever get this fixed?  I'm asking because I'm having the same issue, but it doesn't seem QB responders were understanding.

I also have a Customer that overpaid on their account (they have multiple jobs every month) I posted the credit to the Customer "main" account and now need to credit to several different jobs....help!!

Hello, @KMG123. I recognize the importance of having to credit the overpayment to different jobs. Let me share details of how you can achieve this in QuickBooks Desktop (QBDT).

First, make sure your customer has a credit so you can apply it to different jobs. Then, you can transfer customer credit from one job to another. Refer to the screenshot below for visual guide.

To check where the available credits are applied, run a Customer Balance Detail report. It'll show as Journal Entry (JE) the applied credits in the transaction.

Moreover, if a customer has an available balance but it doesn't show as available, it's possible that the balance is applied to a different transaction. To resolve this, you can check the payment preferences when receiving payments, and turn off the Automatic apply payments option. This will allow you to decide where to use the credits.

You'll want to use these articles for more details in handling customer transactions: 

• Give your customer a credit or refund in QuickBooks Desktop for Windows
• Customize reports in QuickBooks Desktop

Never hesitate to ask for follow-up questions. The Community team is here to help.