I understand you're looking to adjust how payments are applied, Edward. Let me discuss the specifics below.
In QuickBooks Online (QBO), we can only match the Receive Payment transactions to outstanding invoices. If you record a payment without linking it to a specific invoice, it becomes an unapplied payment or credit. While this reduces the customer's overall outstanding balance, the invoices will remain open and unpaid on your reports.
Moreover, to keep your financial records accurate, it's crucial to apply these payments to the appropriate invoices. This way, all invoices will be properly marked as paid, and your customer's account will stay balanced.
For more information about recording payments in QBO, check out this resource: Record invoice payments in QuickBooks Online.
Additionally, to help you navigate situations where a customer has overpaid, I'm sharing an article that offers step-by-step guidance on handling overpayments and issuing refunds in QBO: Record a customer refund in QuickBooks Online.
If you have other questions about managing customer payments or invoices in QBO, please free to add a reply below. We're always here to help.
