Quick Books no longer prompting me to apply credits

Thanks for reaching out to us, @SheriH.

To ensure that credits can be applied, let's ensure that the credit memos we created are for the correct customer so they'll show in the Apply Credits window.

Once verified, to link them to invoices, here's how: 

1. Go to the Customers menu and click Receive Payments.
2. Select the customer's name.
3. A list of open invoices will show which we can select which ones we'll apply the credits to. 
4. Check the invoice and click the Apply Credits option from the menu. 
5. Click the Credits tab. 
6. Check all applicable credits. 
7. Click Save and Close.

However, if it's still not prompting you, I'd recommend that you delete and recreate it, so you can manually apply it to the appropriate invoice. 

To delete the credit memo

1. From the Customers menu, pick Customer Center.
2. Select the customer's name.
3. Double-click the Credit Memo transaction.
4. Click the Delete icon, then OK.

To recreate the credit memo

1. From the Customers menu, pick Create Credit Memos/Refunds.
2. Select the correct customer from the Customer:Job drop-down menu.
3. Enter all the necessary details.
4. Click Save & Close.
5. Once the Available Credit window shows up, choose Retain as an available credit.
6. Click OK.

To know more on how you can handle available credits, see this article: Give your customer a credit or refund in QuickBooks Desktop for Windows.

Should you need additional information, please leave a comment below. I'm always around to help you out.

The scenario is  - pre-payment by credit card, EFT or Wire Transfers.  Payments are input into QB to sit as a credit on account until the time of invoicing. Once you create an invoice and save it, QB prompts you with a "would you like to apply credits" pop up.  This is no longer happening and I have to go search if there is a payment to apply.  This happened after the last update.  Thanks, Sheri

Hi @SheriH,

Thank you for your prompt reply.

When you create a credit memo in QuickBooks Desktop (QBDT), you'll see this window:

If you choose the first option, which is to Retain as an available credit, the system enters a negative balance to your Accounts Receivable account. When you create an invoice, you'll have to manually apply the credit through the Apply Credits button. A feature to enable a prompt to appear that asks if you want to apply an available credit memo to it is unavailable in QBDT.

In case you want to apply a new credit memo you create to an existing invoice, you can choose the third option which is Apply to an invoice instead.

If you have any other issues about invoice payments in QBDT, I suggest you keep this article for reference: Resolve common issues when applying a payment towards an invoice. 

Post a reply if you have other questions about credit memos in QBDT. I'll answer them for you. 

OK, thanks.  I have been using QB for 5 years now and it always prompts me to apply a credit with a pop up window at the time of creating an invoice.  It is only after the last update I did a couple of weeks ago that this feature stopped and I've had to use the apply credits button.

Hello, SheriH. 

Let's check the payment preference to see if the automatically apply payments feature is turned on. Here's how: 

1. Click Edit, then select Preferences. 
2. Choose Payments. 
3. Under Company Preferences, mark check the Automatically apply payments. 
4. Press Ok. 

All of this information and more is available in our guide on how to record a credit memo or refund in QuickBooks Desktop. 

Keep in touch with me here if there's anything else you need. I always got your back. Thanks for coming to the Community, wishing you and your business the best. Stay safe!

This worked!!!  Thank you so much.

Stephanie

This worked!!!  Thank you so much.

Stephanie

I love how you had this answer, that WORKS and non of the QBS "Team" had it.

This worked, thanks Elaine!

Hi ElaineB4,

I have reviewed the solution you’ve shared and it's correct and accurate. Thank you for sharing your inputs to help address the issue.

We love to see members supporting one another! Have a great day.