is it difficult to make sure that our customer records are correct well when reconciling with
customers the most challenging mistake to find and fix is fixing a miss applied payment if you
have any questions about this topic you can leave them in the comment section below and I'll do my
best to help you and of course if you feel the video helped you I hope you will click like and
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with customers means that we are proving our accounts receivable records are correct to the
last detail but a miss applied invoice payment is the only challenging possible mistake that could
still be in the customer receivable records when we are reconciling with them the customers total
balances will be the same and that's one of the things that makes this challenging to find in fact
the customer transaction list will be the same and if you look at the report you will not be
able to tell that there is a miss applied payment just by looking at a list of transactions or just
by looking at the balance in fact the running balance or what QuickBooks calls the balance
forward will also be the same if you have this particular mistake the only indication of a miss
applied payment will be a different open unpaid balance in the open invoice report for example
I mark your teacher went back into our QuickBooks Online records and I purposely miss applied one of
Allens payments that we gave that we received from him in the past and then will imagine that we sent
him a january statement with this mistake now the statement we sent him said balance forward and if
you send a balance forward type of statement you will not see the mistake listed here the customer
will agree with the money amount of every single transaction and agree with the balance after each
transaction in fact the only way that you can tell there is a mistake is if you send this type
of statement the open item statement so let's imagine we sent Alan the open item statement
and ours with the mistake looked like this but there's without the mistake looked like that
now do you notice what the differences are let's take a look for the first invoice on top invoice
number five we have a $3,900 open balance but in their records for that same invoice they have a
2,900 open balance and in our records invoice number 10 which was made on the 17th only has
$1,000 open balance but in their records that very same invoice number 10 has a $2,000 open
balance that's how you know the mistake must be a Mis applied payment so we know the mistake was
a Mis applied payment but somebody miss applied the payment to the wrong invoice QBO quickbooks
online has something great that's going to help you find the miss applied payment remember we can
make this type of statement transaction statement only in quickbooks online do we have a transaction
statement that we can compare that shows both the amount of the invoice and the amount that has been
applied to each invoice and by putting them next to each other it will help us determine which
payment was misapplied as you can see zero in our records zero was applied to invoice number five
but in their records $1,000 was applied to invoice number five and in our records invoice number 10
has 1380 worth of payments applied but in their records only 380 of payments were applied so we
can figure out between the open invoice and this that it must have been a thousand dollars that was
applied to one that should have been applied to the other so somebody has a Mis applied payment
and QuickBooks Online has something else that's really great that's going to help you find a miss
applied payment the top right of every invoice has a payment history in other words opening
the invoice and looking at the top right will show you a list of every payment that has been applied
to that invoice I think this is really great so in other words if I went to the reports and I went to
my favorite one in this case transaction list by customer we can scroll up to the section of Allen
and look only at the January set of transactions now let's pick an invoice to open up for example
I will open up the January 17th invoice number 10 and when I double-click I go back to the invoice
and we can look at the top right and we can see that for this specific invoice there were two
payments made totaling 1380 in fact we could even click on this and get a list of the individual
payments that have been applied to this invoice and if that's not enough we can double click and
open up the payment itself and see exactly where the checkmarks are and which invoice
'iz have been paid by this particular payment so now that we know where to look what do we do in a
real situation get on the phone with the customers bookkeeper open up each payment that we received
from them one by one discuss with them which invoices were paid from each payment the party
with the mistake should fix it at that moment and if it's our mistake we should uncheck the
wrong one recheck the correct one and then send a corrected statement so in the example I gave we
looked at the report we went to transaction list by customer we were on the phone with the customer
opening up each payment and when we opened up the January 19th payment we saw that the customer had
applied it to invoice number five and we applied this thousand dollars mistakenly to invoice number
seven invoice number ten which was done on the 17th so all we have to do is uncheck the wrong one
and recheck the correct one to reapply the payment to the correct invoice click Save and close and
just click yes now when we go back to the open invoice report we can see that our individual
invoice balances for the January invoices now Matt and we can send them a corrected statement you