I am an HOA Treasurer, using QuickBooks Desktop Pro 2021.

A homeowner paid January 2022 dues in December 2021. I created a General Journal Entry (JE) dated December to debit Accounts Receivable for that customer and credit a Deferred Revenue account. Then I created a JE in January to move the funds from Deferred Revenue back to Accounts Receivable. Then I applied the funds to their January invoice.

Now when I create a new invoice, QBDT asks if I want to apply a credit in the exact amount from the above JEs to this customer's account. Why is there credit? It should be used up.

Am I making a mistake or is this a QuickBooks bug?