Credit memo and payment misapplied on invoice I need to delete

mangle · ‎January 29, 2020

A customer was mistakenly invoiced. An outstanding credit memo was used to offset the balance. A payment was received on an invoice already closed and was also used to offset the balance on this mistaken Invoice. Need to reverse both the credit memo applied and payment on this invoice and void or delete the invoice and have the credits available to the customer for future use. Unsure on the proper sequence to correct.

JamesDuanT · ‎February 02, 2020

Hello mangle,

Before you proceed to the steps provided FritzF, you might want to turn off first the Automatically apply credits function. This will stop QuickBooks from applying the available credits to the open invoices automatically.

Click the Gear icon in the upper-right corner and select Account and Settings.
Select the Advanced tab and go to the Automation section.
Remove the check mark in the Automatically apply credits box.
Click Save and Done.

After that, you can already follow the steps provided by FritzF. Moving forward, you'll apply the credits to the correct invoices manually.

Please let us know if me missed anything that you need assistance with. Have a great day!

View solution in original post

FritzF · ‎January 29, 2020

Welcome back to the Community, @mangle.

Since a credit memo and payment were applied to the wrong invoice, all you need to do is to delete the payment. This will unlink the credit, which can now be used for future invoices.

The steps to do this are pretty quick and easy. Here's how:

In QuickBooks Online (QBO), go to the Sales menu at the left pane to get to the Customers page.
Click the customer's name and proceed to the Transaction List tab.
Locate and select the payment to open it.
Tick the More option at the bottom and choose Delete.
Hit Yes to complete the process.

Just in case, consider checking out this article for future reference: Void or delete transactions in QuickBooks Online.

Please let me know if you have any other issues or concerns, and I'll get back to you as soon as possible. Have a great rest of the day!

mangle · ‎February 02, 2020

So delete will enable me to apply that payment to a future invoice?

JamesDuanT · ‎February 02, 2020

Hello mangle,

Before you proceed to the steps provided FritzF, you might want to turn off first the Automatically apply credits function. This will stop QuickBooks from applying the available credits to the open invoices automatically.

Click the Gear icon in the upper-right corner and select Account and Settings.
Select the Advanced tab and go to the Automation section.
Remove the check mark in the Automatically apply credits box.
Click Save and Done.

After that, you can already follow the steps provided by FritzF. Moving forward, you'll apply the credits to the correct invoices manually.

Please let us know if me missed anything that you need assistance with. Have a great day!

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Credit memo and payment misapplied on invoice I need to delete