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Level 1

Is there a way to turn off payments being automatically applied to the oldest invoice?

 
19 Comments
Content Leader

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

Hello @billing8,

 

Thanks for joining the Community. I'm here to lend a hand with turning off payments being automatically applied to the oldest invoice.

 

QuickBooks Online offers automation features, such as automatically applying payments to an invoice, which can be turned off with just a few clicks. Here's how:

 

  1. Select the Gear icon.
  2. Click Account and Settings.
  3. Select Advanced on the left of the screen.
  4. Click the Pencil icon in Automation.
  5. Remove the check-mark in the box next to Automatically apply credits
  6. Click Save and select Done.

 

The following is a screenshot to serve as a visual reference:

 

 

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.

 

That'll do it. I'm confident that you'll have the setting to automatically apply payments to the oldest invoice turned off in no time.

 

Should you need additional assistance, please let me know. Take care.

Level 1

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

That doesn't appear to stop the payment application to the oldest invoice. It stops the automatic payment application, but when a payment is entered QBO still wants to apply the payment to the oldest invoice(s). 

 

It's problematic for some clients.

QuickBooks Team

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

You’d want to manually select the invoice when receiving payments, RJGayton.

 

In the Receive Payment screen, choose the customer and a list of invoices would appear. Select and mark the invoices you’d like to apply the payment to. Click Save and send or Save and close.

 

Just comment below or post again if you have other questions. I’m here to help.

Level 1

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

Is there a setting to turn this feature off permanently? When receiving large payments from customers who have overdue balances it's very problematic because we have to apply payments to specific invoices, not simply the oldest first. To have to go and uncheck $5000 worth of invoices is a nuisance not to mention the delay lag it creates when trying to use the uncheck all button. 

QuickBooks Team

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

Hello there, MandyLou.

 

Thanks for reaching out to us. Let me share some information about applying payments in QuickBooks Online (QBO).

 

At the moment, there isn't an option to automatically uncheck all invoices that you don't want to apply when receiving a payment. You'll have to manually remove check marks from those old invoice transaction and apply the payment to the correct invoice.

 

At this time, I'll do my part and raise this concern to our Developers so this will be taken care of.

Just in case you need help with something else from a live technical support, feel free to reach them out through the steps below:

  1. Sign in to your QuickBooks Online company.
  2. Click the Help icon in the upper right of the screen.
  3. Select Contact US on the pop-up. 
  4. Enter what you're needing assistance with in the How can we help? field and choose Continue
  5. Click Get a callback.
  6. Enter your contact information.
  7. Select Call me.

I'm looking forward to see this feature soon. Should you need help or questions about applying payments in QBO , just let me know as I'm always here to help you.

Level 1

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

I hope that the developers are working on this. It really is a problem that causes errors sometimes and thankfully when it comes to the deposit I catch the mistake but have to print out a whole new deposit slip and redo the deposit.

Level 1

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

I hope the developers are working hard on this. It's very tedious to have to uncheck all the preselected invoices. It also causes errors if you are not paying extra attention. Thankfully I go over my deposit slip and double check and have caught a couple of errors due to the pre-selection of the invoice.

QuickBooks Team

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

Thanks for joining us here in the Community, @Vani.

 

Allow me to share some update about turning off the payments that are being automatically applied to the oldest invoice in QuickBooks Online. 

 

Our developers are constantly working to improve the product and appreciates the help of users in bringing things like this to their attention. To be updated with our latest news and updates including product improvements, I'd encourage you to visit our QuickBooks Online Blog regularly.

 

Also, as soon as any progress of this concern is received, I or another member of the Community Team will be happy to update this thread so you'll be notified. If you have any other questions with QuickBooks our Customer Care Team is also there to provide assistance.

 

You are always welcome to reach back out to me if there's anything else you need concerning QuickBooks. I'm always here to lend a helping hand. Wishing you and your business continued success.

Level 1

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

Hi MandyLou.

I came across your post while looking for an answer to the same question. This drives me nuts, too, but I was able to figure out a workaround for it. I'm in Canada, but I think this part of QBO should work the same. 

When in receive payments, enter all the info as you normally would, but leave the 'amount received' box blank. Then as you select the invoices the client is paying, QBO automatically fills in the payment received amount and keeps adding to it as you click additional invoices. Once you've clicked all the invoices paid by the client, in a perfect world, you're 'Amount Received' should now equal the amount of the payment.

Hope that helps!

Laura

Level 2

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

This would be such a simple feature to have a way WE choose which invoices to pay rather than QB Online telling us which ones they think we should pay.  It also adds a major inconvenience in that if you are dealing with dozens upon dozens of invoices and you want to check them off to be paid as you are simultaneously matching them with the vendor statement, you have to first go through and uncheck them all, which is tedious to then have to go back and check again in order to be sure you are not under or over paying.  There is a grayed out check box at the top of where you check or uncheck invoices to be paid, but it doesn't work to uncheck and check as it seems it should.

 

The other thing is, near every time I go to pay an invoice, the payment amount column that is supposed to auto generate, is not even the same as the amount due so we have to manually go through to ensure QB Online didn't change the amounts all by itself.  For instance, I have 5 invoices I am paying, and all of them are for $100, four of them may say $100 and one random one will say $3.00.  The same happens with the credits.

 

I am writing as I just did a large vendor payment and it did not even populate ANY amounts in the payment column, so I had to get out the calculator and add up about 70 invoices and credits manually when QB Online should automatically be doing this.

 

The way it stands now, paying invoices is an annoyance I dread with our larger vendors.  I could understand if this was a tough fix, but it is not and it is clear that most would like the option to turn a welcome feature in bill pay on/off when necessary.

 

I would "contact" us as suggested, but after spending 45 minutes the other day (it stated 5 min wait), waiting for an agent to assist, I hope one of you can pass this on with the other concerns as I don't have time to wait for an agent. 

 

Thank you so very much and we do appreciate all your suggestions.

Level 2

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

We have the same issue and face this challenge weekly.

QuickBooks Team

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

Hi @Veda,

 

I understand the need to implement the feature soon as we deliver customer satisfaction. Currently, we can consider the workaround shared by my colleagues and @MomtoCFO above.

 

On the other hand, when receiving a payment, you'll need to manually select each invoice you wanted to pay. Thus, it doesn't auto-generate the amount due on the invoice. As of this time, you can consider performing the same process that you usually do.

 

But I want to let you know that your voice matters and I'm submitting your feedback directly to our engineers. For now, you can visit our blog site so you'll be able to get the latest updates about QuickBooks and what our Product Care Team is working on.  

 

Please feel free to post any other questions you have below. The Community team and I are always here to help you out.

Level 1

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

This is an ongoing problem with Desktop versions as well.

Any way around this?

QuickBooks Team

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

Hi, @SantiagoID.

 

The automation usually happens when entering the amount received on the Payment Amount section before selecting the invoices. If there's a matching open invoice from the amount entered, it will choose it regardless of its date.

q2 2.PNG

On the other hand, if the amount doesn't have a matching invoice, it'll apply if from the oldest to the current invoices.

q2 1.PNG

As a workaround, you have to select the invoices you want to pay first before entering the amount.

q2 3.PNG

I'm always here to help if you have any other questions, just leave a comment below. Wishing you continued success!

Level 1

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

I don't think my issue is well understood, so let me provide some color.

 

We import 99.9% of all payments, from various sources, and we do this via .iif files.

I have the preference turned off within "Edit Preferences", so QB does not automatically apply payments (but this applies only to manually entered transactions, within the "Customer Payment" screen/form.

 

I want to import payments as we are, but I want QB to simply import the transactions, and NOT apply them at all, to anything, in any way, shape, or form.

 

By way of example, for the month of October, we've just now imported about 5,000 payments and roughly the same number of Invoices. My team of Accounting Clerks is going through this list of payments to apply them to the correct invoices. However, the first step we have to complete is unapplying the payments because QB applied them incorrectly. We then have to manually apply them to the correct invoice before we consider the process complete.

 

Now, to all those that would suggest I simply use Sales Receipts instead, my response would be, why don't I just use a General Journal Entry debiting cash and crediting sales revenue? Sales Receipts provide a lot of additional work for the same benefit as a Journal Entry. We are knowingly using Invoices and Payments to properly track our sales and ensure that each one gets paid. We're not just tracking payments received; we are accounting for Sales and  Accounts Receivable properly, very closely followed by full cash reconciliations (the way accounting should be done).

 

So, with the full explanation behind my problem, how do I prevent QB from automatically applying payments when using .iif import files?

QuickBooks Team

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

Imported payment transactions will convert into available customer credits when unapplied, SantiagoID.

 
Since they’re auto-applying, there’s a possibility that your auto-apply credit feature is turned on. Here’s how to check: 

  1. Click Edit at the top and select Preferences. 
  2. Go to Bills from the left menu. 
  3. Select Company Preferences. 
  4. Make sure that the Automatically use credits is not selected. 

You might also want to connect the receiving bank account to online banking. By doing so, you’ll be able to apply this payments manually to their invoices. Check this out for additional details: Download Bank Feed transactions.


Stay around here if you need anything else. 
 

Level 1

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

The QuickBooks Team people must be trained to never tell a customer "no".

I've said nothing of bills because we aren't discussing bills in this thread. So, how could a response from the QuickBooks Team regarding auto-application of credits on Accounts Payable be an appropriate response, when all I presented are transactions related to Accounts Receivable!?

 

Additionally, I've said nothing of banking, besides a short mention of cash reconciliations. My challenge is not with Banking or Accounts Payable. My challenge is with Accounts Receivable, specifically Payments being automatically applied during importing, even though my preference is turned off.

 

So, let me ask again and see if I can get a straight answer. How do I stop QB from automatically applying payments during an .iif import!?

QuickBooks Team

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

Thanks for clarifying that out for me, @SantiagoID.

 

Once payment transactions are imported in QuickBooks Desktop, this will automatically be applied on an open invoice. The system will immediately detect the payments and will sync into the invoices.

 

If it happened to match incorrectly, I recommend applying it manually.

 

We're always open to innovations to provide you the best customer experience. Our developers are constantly uncovering ways to improve the product and make it work the way your business needs.

 

Having that said, I encourage you to check the New Feature section on your QuickBooks to be updated with our latest news and updates including product enhancements.

 

To do that:

  1. Click on Help at the top menu bar.
  2. Select on New Features.
  3. Choose New Feature Tour.

new feature.PNG

I'm up for further assistance if there's anything else you need. Just let me know by leaving a comment down below. Take care!

Level 1

Re: Is there a way to turn off payments being automatically applied to the oldest invoice?

I found if you remove the total amount receive, it clears the checkmarks.  Then just confirm the total after you've chosen your invoices.

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