How to Unapply Payments and Credits in QuickBooks

Wondering if you might help me with this one. I applied payment to May (so it says 'paid' on the invoice), but the client claims the payment goes to June, leaving May unpaid.  How do i undo a payment?  Also, I have some accounts where I've accidentally applied credits to them and I don't know how to undo those.
Open the payment – it's easiest to press Ctrl/F to use Find.  Then just unclick the invoice you applied it to and click the invoice you want to apply it to.

For credits, go to the invoice you applied it to.  If you don't know, open the credit memo and select History at the top.  Click on the invoice, select Apply Credits, and uncheck the previously applied credit(s).  Then go to the invoice you want to apply the credit to and click Apply Credits.

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This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.

Ruth Perryman - QuickBooks Specialist Written by +Ruth Perryman

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8 Responses to How to Unapply Payments and Credits in QuickBooks

  • Hi, how could I apply payment to invoices basing from the advance payment, Goods delivered to the customer were returned and there were orders which payment is to be taken from the advance payment.

    • Hi Lina,

      Open the payment, uncheck the invoice you no longer want to apply the payment to and check the invoice you do want to apply the payment to.

      You’ll also need to prepare a credit memo for the returned goods and apply it to the correct invoice.


      • Thank you very much for the information on opening the payment and unchecking the invoice. The issue I am running into is that some of the payments are showing up with “bills paid in this transaction” with the top of the pop up box labeled “Bill Payments(Check) – name of bank” but the rest of the payments are showing up with the Expenses/Items tab and the account as Accounts Payable with the top of the pop up box labeled “Write Checks – name of bank”. The payment is correct so I do not want to void it, I just need to change the bills to which I applied it. Is there a way I can change the invoices paid?

        • Hi Ruth,

          You can do the same thing with bill payments as invoice payments – uncheck the bill and select another one. Unfortunately, you can’t do the same thing with regular checks. Once you set the credit on the bill, there’s no way to go back and undo it without deleting the check.

          Just one more reason to never ignore the warning that you have a bill for a vendor when you’re entering a check. When QuickBooks gives you a warning, it usually means you’re about ready to make a mistake that might be difficult to fix.

  • Hello, i’m trying to figure out how to clear a credit i’ve applied to an account by mistake and i’m trying to create a statement and the credit is showing up on the statement which should not be there. Please help. Thanks.

    • Hi Will,

      Open the invoice it was applied to, select the Apply Credits button, and uncheck the credit.


      • What about when the apply credits button doesn’t show up?

        I have a bill paid entirely from a credit memo, using history I can find the invoice, fine, but I don’t have the option to “apply Credits”. No button, no menu choice etc.

        Because the invoice is fully paid by the credit memo it doesn’t show up in the pay bills screen either to be able to change it.

        I have full access and am using Enterprise 2011 in Retail mode.

        at this point it seems I have to delete the bill and recreate it??

        This makes no sense to me, I should be able to unapply an incorrectly applied credit memo.

        • Hi Al,

          I think your confusing invoices with bills. Invoices are used for customer sales, bills are used for payments to vendors. Credit memos are for invoice credits. Bill credits are for, well, bill credits.

          You apply a credit memo (invoice credit) by opening the invoice and selecting the Apply Credits button.