Hi there, @joey-performance.
I'll share insights about recording partial payments in QuickBooks Online so you can apply them to and close an invoice.
You're on the right track. A partial payment will show up as unapplied credits in the Credits section when creating a payment for an invoice. Yes, you can use the amount to pay the invoice but it won't let you save the transaction with the credits alone.
This is the reason why you receive such an error message saying something's not quite right. And this means you'll have to enter the remaining amount to be paid in the Amount received field to close the invoice and record the payment.
Now that the partial payment to your invoice has been recorded, here's a reference with the steps in creating a document for your customers showing what is due for a certain number of days: Create and Send Statements in QuickBooks Online. This way, you can remind them and let them prepare the needed payment for other invoices.
I've got you covered if you have questions about QuickBooks invoicing. Don't forget to include my name, @JonpriL, in your reply in the comments below so that I can get back here and lend a hand. Take care always, @joey-performance!