QB online direct bank transfer showed $2100 received and refunded on SAME day by Co B. Received $0.Now create new invoices for Co B$1170,QB show paid with $930 in balance

Hi there, elainesun2.

It could be the Automatically apply credits feature is turned on and you've created a credit memo. That's why the invoice shows paid with a $930 in balance.

To resolve this issue, you'll need to turn off the Automatically apply credits option and delete the created credit memo. Once done, unlink the payment from the invoice.

Here's how to to turn off the Automatically apply credits:

1. Click the Gear icon at the upper right corner.
2. Select the Advance tab.
3. Select the Automation section. Then, click the pencil icon.
4. Remove the checkmark in the Automatically apply credits box.
5. Click the Save and Done button.

Please follow the steps below on how to delete Credit Memo:

1. Click the Sales at the left panel. Then choose Customers tab.
2. Select the customer.
3. Choose Transaction List tab. Then open the credit memo and click it to expand the page.
4. Click the More button and hit Delete.
5. You'll be prompted with Are you sure you want to delete this? select the Yes button.

Instructions below are steps on how to unlink the payment from the invoice.

1. Select the Sales at the left panel. Then choose the Customer tab.
2. Select the customer.
3. Choose the payment transaction. Then click it to expand the page.
4. Remove the checkmark in the boxes beside the Invoice and Credit Memo option.
5. Hit Save and close.

After following the steps above, I suggest to create a refund receipt or check to record the refunded amount.

Here's how to use the refund receipt:

1. Click the Plus icon at the upper right corner. Then choose Refund receipt.
2. Select the Customer drop-down, then select the customer you want to refund.
3. Choose the Refund From drop-down, then select the bank you deposited the payment for the invoice too.
4. Add all products or services the customer returned in the Product or service column.
5. Fill in the necessary fields. Then click Save and close button.

You may check this article to learn different ways how you can send invoices to your customers in QuickBooks Online: Send an invoice.

Please let me know how it goes or if you have any other concerns with QuickBooks. I'll be around to help you out. Have a good one.

Hi ChristieAnn,

Thank you so much for your help. I have not started anything as you suggested yet because I need to know the answer for this question before I do any correction:

If I create a refund receipt, will money really go back to Company B? Money will be taken out of my account and go to Company B? Or no real money involved, only book keeping record cancel out the $2100 error?

On 10/8/2019 QB transaction showed $2100 was automatically received and refunded on the SAME day. We have no idea how this happened in the QB system. What we know is no money has been deposited to our bank account. $2100 never came in. We have a bank statement to prove it. Company B eventually send us a check in the mail and paid the invoice in full. But in QB system, this "$2100" is still there, never refunded as system transaction indicated. So when we entered 2 new invoices for $400 and $770, immediately showed paid by this "$2100", with a remaining of $930 ($2100-$400-$770). The fact is: These 2 new invoices have not been paid yet. We have not received any payment. There is no "$2100" from Company B.

If create a refund will actually give money back to Company B, then we cannot do that. We do not owe them any money. If create a refund is only a record to zero out this $2100 system error, no real money involved, then we can do it. Please advice. Thank you.

Thank you so much. Problem solved. Appreciate whole-hardheartedly for such super fast responses.