Why does a credit memo in QB online show as overdue, it never showed that in my desktop version?

Let me first welcome you here in the Community, sales-sign letter.

Normally, when a credit memo isn't linked yet to an invoice, the status will show as Unapplied in QuickBooks Online. For me to further check the main cause of why your credit memo appears as overdue, I suggest sharing more details about the transaction. Attaching a screenshot would be a great help too. 

For more information about applying a credit memo, I encourage browsing this article: Give a Credit Memo to Customers.

Additionally, I've included an article that'll help learn what to do when a customer overpays you. This is to ensure your records are accurate: Handle a Customer Credit or Overpayment in QuickBooks Online.

I encourage dropping your response in the comment section below. Doing so helps us provide the help you need.

Hi Charlene,

Thanks for replying. See the attached image for this customer. This was a credit memo due to the fact that this was a fraudulent charge and we incurred a chargeback. In my desktop version I never had it make a journal entry. Also I have several customers showing up in the online version saying that I have overdue invoices but not really. I had an invoice, and then applied payment. Some of these go back months.

Debbie

Thanks for getting back to us, @sales-signletter.

You'll have to apply the credit to your customer’s open invoices, so it doesn't show Overdue in the Sales menu. To apply a credit memo to the open invoices, follow the steps below:

1. Click Sales from the left pane.
2. Select Customers and click the customer’s name.
3. Locate the invoice you want to apply the credit to and click Receive Payment.
4. Enter the necessary information on the Receive Payment window.
5. In the Outstanding Transactions section, make sure that the correct invoice is selected.
6. Click Save and close.

Also, you can turn on the credit memo auto-apply feature. This feature will automatically apply credit memos to customers' balances or open invoices. 

Here's how:

1. Go to the Gear icon.
2. Click Account and Settings then tap the Advanced tab.
3. Select Edit ✎ in the Automation section.
4. Click Automatically apply credits.
5. Hit Save, then Done.

In case you want to turn off this feature, just go to the Automation setting again and tap the button beside Automatically apply credits.

The steps above will help you apply the credit to your customer’s open invoices. For your reference, you may check out this article: Apply a credit memo, credit or refund to a customer.

You can also pull up the Customer Balance Detail report. This report, lets you know what payments and invoices make up each customer's current outstanding balance. Just go to the Reports menu Under who owes you choose Customer Balance Detail report.

Also, you can check out these articles below about, paying bills and handling vendor credits in QuickBooks Online for your future reference:

• How do I handle vendor credits and refunds?
• How to enter and pay bills?

If you meant something else, please let me know I want to make sure that everything is working fine on your end. You can also resend the screenshot, so I can gather more information about this. Take good care!

There are no outstanding invoices. There was the original invoice and I applied the payment. The we found out it was a fraudulent charge and we got a chargeback with we did the credit memo to.

Hi @sales-signletter,

Thank you for your prompt reply. I'll handle this query for you about an overdue credit memo in your QuickBooks Online (QBO).

At this point, I suggest you contact our Technical Support team for further assistance. They can pull up your company information within a secure environment, and investigate as to why you have this issue.

For the steps, you can refer to this article: QuickBooks Online Support.

In case you had your QuickBooks Desktop company file converted to QBO, see this article: What to expect when you switch from QuickBooks Desktop to QuickBooks Online.

Do you have other questions about QBO? Post a comment below, and I'll get back to you. 

Ryan, 

Thank you. I'll try that. I'm having a hard time adjusting to online. I've had the desktop version for like 18 years now.

Debbie

Did you ever get this issue figured out I am having the same problem 

I'm here to share insights about your credit memo, @Christinam1040.

Credit memos normally remain open once they're not applied to corresponding invoices or refunds. The same thing with how they show up as overdue if they haven't been linked to a sales transaction for your customer.

Therefore, I highly suggest reviewing the list of transactions under the customer's name on the credit memos. And make sure to apply them accordingly by following the steps outlined in this article: Create and Apply Credit Memos or Delayed Credits in QuickBooks Online.

I'm also adding this reference with tips you can use in letting your customers know the summaries of their invoices, payments, credits, and balances: Create and Send Customer Statements in QuickBooks Online.

It'll always be my pleasure to help if you have any other concerns besides managing your sales and customers. Please let me know by clicking the Reply button and leaving a comment below. Have a good one!

Thank you my problem is I’m applying the credit memo to an invoice, but then it seems to be duplicating as overdue also.  Also when applying the credit memo do I need to lower the payment received or should QB adjust accordingly.

Thank you for joining the thread, @Christinam1040.

I can explain why the applied credit memo is duplicated as overdue.

Seems like you've applied an overpayment to an invoice. You left us with an open balance to another customer when you applied a credit memo to the overpayment instead of the original invoice and generated a check for a customer.

To fix this, you'll need to review all your customer's transactions and make sure the overdue transaction isn't duplicated. Then, you'll need to review why the overdue is duplicated. Once done, make sure that there are no other customers linked to an invoice. If so, you can make necessary changes and unlink them by voiding/deleting the invoice under their name.

Here's how you can do it:

1. Open the Sales or Expense menu.
2. Locate and open the transaction.
3. Review the transaction to ensure you need to void or delete it.
4. Add a note to the Memo or Message section if you want to include the void or delete date.
5. Click on More from the footer, then select Void or Delete.
6. To confirm, hit Yes.

At a time, you can only void one transaction. Because the modification is permanent, QuickBooks restricts the number of voids you may make to avoid mistakes.

Even though this entry was made years ago, I still suggest seeking your accountant for instructions. He or she can advise you on the best course of action.

Please feel free to hit the Reply button if you need further help with this or with QuickBooks. I'm always willing to back you up. Have a safe weekend.