and now you're ready to learn about more advanced transactions you must be able to reapply a
customer's payment if a customer makes a partial payment to an invoice that is not the oldest you
the bookkeeper have to reapply the payment let's quickly review how QuickBooks applies the payment
by default first it will look for an exact match of the amount of the payment to see if there's an
invoice for that same amount if it does not find a match QuickBooks will automatically apply the
payment to the oldest invoice if the payment is too much for the oldest invoice QuickBooks will
apply the remainder to the next oldest invoice but what if a customer makes a partial payment
to a specific invoice that is not the oldest for example let us imagine on February 4 Betty gave
us $400 cash specifically for invoice number 14 when we look at Betty's open invoice report
we see that invoice number 14 has five thousand four hundred dollars remaining unpaid we want the
four hundred dollars just to be applied to that one four fifty four hundred dollars for invoice
number fourteen however because there is no exact match of four hundred dollars QuickBooks will not
apply it to invoice number fourteen QuickBooks will instead automatically apply it to the oldest
one that's not right what will physically happen is that QuickBooks will place the checkmark to
the oldest one number six here's what we have to do we have to first remove the checkmark next to
number six before we place the check mark next to the correct invoice number fourteen let me stress
that point to fix a miss apply payment you must first uncheck the wrong one before you recheck
the correct one if you do it differently then you will get an error message if you don't remove the
wrong checkmark first once again remove the check mark by clicking on it and then check
on the correct invoice so what will be the result if we do this properly well Betty's open invoice
report looks like this if $400 is properly applied to number-14 the balance of number 14
should go down to $5,000 if you do it incorrectly and leave the check mark in the wrong place then
invoice number 6 will be decreased by the $400 instead and this is what Betty's open invoice
will look like let's take a look at how to do this we will open the payments window and of
course the payment method is cash the customer is Betty Boop when we choose Betty her open invoices
show up in this panel here the date was February 4th now the amount is $400 look carefully what
happens when I push the tab key QuickBooks put the checkmark on the oldest one because it did
not find an exact match for $400 now we are supposed to click on this check mark to remove
it before we place the check mark on the correct one but let me just show you what would happen if
we leave the check mark on the wrong one and try to click on the correct one aha we get a warning
you cannot apply an amount greater than the total payment plus any existing credits in other words
you forgot to uncheck the wrong one and recheck the right one it is a very simple click on the
check mark to remove it from the wrong one click on the check mark to place it on the correct one
now when we click Save and close we can open the open invoice report and we notice Betty's
results are correct Betty's invoice for number fourteen has gone down to five thousand dollars
reapplying payments can sometimes be tricky let's take a look at this second example
February 5 Allen gave us three thousand dollars cash specifically for invoice number thirteen
when we look at Allen's open invoice report we do not see an exact match for three thousand dollars
therefore QuickBooks will apply the money to the oldest invoice in this case number five however
because the payment is bigger than invoice number five the XS will be applied to the next oldest one
invoice number seven this means that QuickBooks is going to place two check marks it's going to check
mark the oldest two however we want the entire three thousand applied to the last one for Allen
invoice number thirteen listen carefully you must completely remove both checks before checking the
correct one if you don't remove both check marks before checking the correct one you will get the
same error message that we saw a moment ago let's take a look again we will open the payments window
and of course the Methodist cash the date was February 5th the customer was Allen and we can
see his invoices here we might have to collapse the ribbon so that we can see all of them then
we'll put the three thousand dollars in the money field and push tab notice quick books applied the
three thousand to the two oldest invoices because there was no amount do that exactly
matched three thousand dollars you must remove both checkmarks if you only remove the top one
and then you click it on to the proper invoice only the amount of the top one will be applied
we don't want that remove it what we want is all of the entire payment applied to this last one and
that's why we have to click on both of those checkmarks before we put it here on this last
invoice when we click Save and close we notice that the first two remain untouched but invoice
number 13 has decreased from six thousand to three thousand dollars the receive payment window can be
tricky you have to be careful to make sure that you can find all of the hidden checkmarks that
QuickBooks puts sometimes QuickBooks puts the checkmark in a place that you cannot see that
can be frustrating and confusing let's take a look at this example February 6 receive
two thousand two hundred forty dollars from candy for invoice number three and candy gave
us check number six one one seven let's take a look at what happens when we open the payments
window the method is check and the number is six one one seven the date was February 6 look what
happens when we choose candy even though candy has four open invoices we're only seeing three
because we did not scroll down if we scroll down we can see there are four now when we put in the
money amount to two four zero I'm going to push the tab key I pushed the tab key and this is the
first time we did not see the check mark the check mark is on the fourth one but you cannot see the
fourth one I recommend instead of scrolling down to take a look at all the invoices it would be
better to collapse the ribbon so that you can see the whole panel now we see where the check
mark is and now we're able to remove it from the wrong one place it on to the correct one
by clicking then when we click Save and close we now have the correct open invoice for Alan