How do I fix payments applied to the wrong invoices?
Legacy KB ID: 296
If payments have been applied to the wrong invoices, how do I apply them to the correct invoices?
This document details how to find and reapply misapplied payments. This process can be lengthy or quick depending upon when payments were first misapplied. There are three steps involved in fixing payments applied to the wrong invoices:
- Use a Customer Balance Detail report to find the first misapplied payment.
- Delete and reapply each incorrectly applied payment.
- If the misapplied payments were caused by a customer credit, account for the credit in a new way, so you don't have the same problem again with this customer.
Finding the first misapplied payment
1) From the Reports menu, choose A/R Reports, and then Customer Balance Detail.
2) Click the Filters button to bring up the Report Filters window.
3) Select the Name filter.
4) From the Name drop-down list choose the Customer:Job with the misapplied payments.
5) Click OK. Place your mouse pointer over the latest payment (it should now be a magnifying glass) and double-click.
6) Check to see whether the invoices QuickBooks indicates were paid by this payment are the correct ones. If they are not, click Cancel and check the previous payment on the report, until you find the first misapplied payment.
7) Be sure to check the Existing Credits field. Often, misapplied payments are caused by a credit this customer had. QuickBooks always applies all existing credits before applying the current payment amount.
8) When you find the first misapplied payment, continue with the next procedure.
Deleting and reapplying payments
To reapply payments to the correct invoices, you must delete the payments, reenter them, and apply them to the proper invoices. If the payments have been deposited, you first have to delete the deposit.
1) Display the first misapplied payment.
2) Write down the information about the payment, since you're about to delete it.
3) Press Ctrl+D. If the payment has been deposited, QuickBooks will not let you delete it until you've deleted the deposit in which it's included.
4) To find out which deposit the payment is linked to, press Ctrl+H from the Receive Payments window. The Transaction History window shows the paid invoices and the deposit linked to the payment.
5) To get to the deposit, select the deposit and click the Go To button.
6) At the Make Deposits window, click the Print button to print a list of the items (payments) included in this deposit, since you'll have to delete and re-enter this deposit. (Or, write down the contents of the deposit.)
7) Press Ctrl+D to delete the deposit.
8) Once the deposit has been deleted, delete the payment using Ctrl+D.
9) Re-enter the payment you deleted, making sure the payment is applied to the correct invoice(s). If there is a credit in the Existing Credits field when you enter the payment. Select the "Apply Existing Credits?" to applly it, or clear the checkbox to apply just the current paymet amount.
10) Re-enter the deposit you deleted, including the newly entered payment.
11) Repeat these steps until you've re-entered and applied each payment to the correct invoices.