Applying Customer Payments Correctly
Every now and then a payment from a customer will be completely processed through QuickBooks before you discover that the payment was applied to the wrong Invoice (or even the wrong customer). You will apply the payment, deposit it in the bank, and reconcile the payment on your bank statement. Then your customer calls and asks why his Invoice is still showing as Unpaid. You search for the payment in QuickBooks and find that you applied it to the wrong Invoice or even a different customer! What do you do to fix this?
If you simply applied the payment to the wrong Invoice (but the right customer), you will simply enter the Customer Payments screen for that payment, uncheck the incorrect Invoice, and check the correct one. Then you will Save and Close.
If, however, you applied the payment to the wrong customer or job, the option listed above will not be available. Instead, you will have to go through a few steps in order to remedy your situation:
- Undo or Delete the deposit that the payment in question was on. (You can just delete and temporarily replace the line item if it was part of a group deposit).
- Delete the Customer Payment.
- Receive Customer Payment again (applying it correctly this time).
- Deposit the payment into Undeposited Funds if it was part of a group deposit originally. Then open the original deposit and click on Payments and select your corrected customer payment. This payment will again be grouped with the original deposit. Be sure to delete the temporary line item if you used one to hold the place of the customer payment. Re-reconcile the deposit.
- If the payment was not part of a group deposit the first time, then simply redo the deposit and re-reconcile the transaction.
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