Why does the payment show as paid when I’m creating a new invoice?

Hi there, @designerstone-gm.

QuickBooks Online (QBO) has an automated feature that applies credits to the next invoice created. This can be the reason why your newly created invoices are showing as paid.

If you wish to control when these credits are applied, you can turn off this feature. 

Here's how:

1. Go to the Gear icon.
2. Select Account and Settings.
3. Click the Advanced tab.
4. Look for the Automation section, then press Automatically apply credits.
5. Toggle it to turn off the feature.
6. Hit Save, then Done.

To remove the payment applied to the invoice, follow these steps:

1. Highlight the Sales tab.
2. Select Invoices.
3. Search for the invoice in question, then click to open.
4. Press the link under the PAID status. It usually reads 1 payment made ($amount).
5. A popup window appears, click the link under Date.
6. On the Receive Payment page, scroll down and hit the Clear Payment button.
7. Save and close when finished.

See this article for more information on how to create and apply credit memos or delayed credits in QuickBooks Online.

Additionally, let me share these links that you may find relevant in personalizing and handling your sales forms: 

• Customize invoices, estimates, and sales receipts
• Record invoice payment

Should you need additional assistance in turning off this feature, please let me know in the Reply section below. Take care and have a good day!

Hi @designerstone-gm,

Hope you’re doing great. I wanted to see how everything is going about the invoice concern you had the other day. Was it resolved? Do you need any additional help or clarification?

If you do, just let me know. I’d be happy to help you at anytime.

Looking forward to your reply. Have a pleasant day ahead!