Fixing Incorrectly Applied Payment in Quickbooks
Quickbooks Helpful Tips
When it comes to your customers, the more open invoices you have, the more chance you have of making a major mistake. It could be in the form of applying a payment to the wrong invoices for the same customer, or worse, applying a payment meant for one customer to another. This error will cause discrepancies on an open balance and leave you with one big headache. However, in Quickbooks, the program organizes you and functions in every way to make that happen.
When it comes to incorrect payments, typically you have to deal with two issues: Unapplied payments and incorrect amounts paid. Thankfully, both are relatively easy to fix.
If your payment unlinked to any invoice or if the amount is an available credit, it will become an “unapplied” payment. While there is nothing wrong with them, they are extremely challenging to track. Your goal is to assure each payment links to an invoice. Keeping unapplied payments down is simple: open the “Payment” tab in Quickbooks and link a payment to an invoice, even if you have to create one to do so.
Incorrect payments can be devastating to your profits as well as embarrassment when you get a call from a customer wondering why they got too much or complaining that they got too little. To correct this, edit the payment in the “Payment” tab and change it to the exact amount paid. If the monies have been deposited or reconciled, you will first need to remove the deposit from the account register. Be sure to edit the payment, redeposit it, and double-check to make sure it has the reconciled status.