Status of the credit notes in the QuickBooks online

Thank you for dropping by the Community today, Khurram1010.

I want to make sure I can provide the best solution to your credit notes concern. Thus, I have to gather more information on what you’re experiencing.

May I know if you applied the credit memo to the invoice and the information in the Status column didn’t change? Are you trying to update the transaction status to a different one?

While waiting for the information, I’m adding some links where you can access our self-help articles. These resources contain topics that will guide you on how to apply credit memos, and handle other customer-related activities.

• Create and apply credit memos or delayed credits in QuickBooks Online
• Invoices and payments
• Sales and customers

I appreciate any additional details you can provide. Thank you in advance and have a good one.

I am trying to update the transaction status to a different one

I’m here to guide you on how to update the status of your credit notes, Khurram1010.

The Unapplied status indicates that you haven't linked or used the credit memos to the invoice. You'll have to apply them to your customers' open invoices to close the entries. If they're from different clients, you'll have to perform the process for each one.

Here's how:

1. Open your company and head to the Plus menu at the top left and choose Receive payment under Customers.
2. On the Receive Payment page, click the Customer drop-down and select your client’s name.
3. Fill in the fields with the necessary information.
4. Navigate to the Outstanding Transactions section and tick the box for the invoice you wish to apply the credit memo.
5. In the Credits section, select the credit notes you want to link to the sales entry.
6. Enter how much of the credit you want to apply in the Payment column.
7. Leave the Payment method, Reference no, Deposit to, and Amount received fields blank.
8. Fill in the remaining fields including the Payment date.
9. Make sure the total is correct after applying the credit memo.
10. Once done, press the Save and close button.

After following these steps, you’ll see that the status will show as Closed.

If you wish to open the credit notes again, let's unlink them to the sales transactions. I'll guide you through the process.

1. Go to the Sales menu on the left panel and select All Sales to open the Sales Transactions screen.
2. Tap the Filter drop-down to sort the entries.
3. Pick Credit memo from the Type drop-down and choose the correct Status, Date, and Customer.
4. Tap the Apply button for the changes to take effect.
5. This will display a list of all credit notes added to your QuickBooks.
6. Look for the one you’re working on with the Closed status and then click on it to see more details.
7. On the Credit memo page, hover your mouse to the PAID section and tap the 1 payment made link including the date.
8. You’ll be routed to the Receive Payment page.
9. In the Outstanding Transactions section, deselect the box for the invoice you wish to unlink.
10. Press the Save and close button for the changes to take effect.

When you go to the Transaction List, the Unapplied status will show on your credit notes, @Khurram1010 

For additional resources, the following article provides detailed information on how to handle credits and turn on the auto-apply feature: Create and apply credit memos or delayed credits in QuickBooks Online.

You can also bookmark the Sales and customers reference in your browser for future reference. It contains a list of online resources to help users easily manage customer payments, tailor their sales forms, create statements, and process refunds.

Keep me posted on how it goes after following the troubleshooting steps and its result. I want to make sure your customer records are in order and that your credit notes will show the correct status. Have a great rest of the day.