In this tutorial, Linda Artesani of Artesani Bookkeeping walks through a common QuickBooks Online issue where a credit memo is automatically applied to a new invoice, causing the invoice amount to be reduced unintentionally. She demonstrates how to locate the ‘Automatically Apply My Credits’ setting under Company Settings → Advanced, turn it off, and then delete the auto‑generated payment that applied the credit. After removing the payment, the invoice reflects the full amount and can be sent to the customer. The video emphasizes the convenience of the automatic credit feature while also showing how to reverse it when it doesn’t suit the situation, providing a clear, step‑by‑step process for QBO users.
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Hi there, Linda Artesani, Artesani Bookkeeping. So I thought I'd answer a question on the community forum. Haven't done that in a while. And I want to try to maybe do one of these one a week and find a good question. So this, I think I found a pretty good one. So let me share my screen. Come over to the question. It's Nickel Construction. And he says he accidentally generated a credit for a customer. And now I want to apply it to the new invoice I'm trying to send. How do I erase the credit? I think he meant to say now I want to not apply it to the new invoice because he wants to erase the credit. So let's go to the community file. I'm going to take this William Gutierrez. And I've got a couple of— as you can see, I've got a credit balance open here. So now I'm going to create an invoice for this customer. And I'm just going to make it for widgets. I'll make it for $270. So I'm going to hit Save. And as you noticed, it says we apply this existing credit of $3,150 to this invoice. And then of course, don't show this again. So why did that just happen, right? All of a sudden, boom, it applied the, applied the credit. Well, how that happens is, and I'll take you there. There's a setting in the gear. Company Settings. So we're going to go into the Company Settings here. And then it's under Advanced. We'll come down here and there's a little thing that says Automatically Apply My Credits, and I've got it set to on. So when you have that set to on, it automatically applies the credits. So you want to shut it off, right? And hit Save, and then hit Done. So now when we go back to this invoice, you can see that it's been applied now, and I don't want it to be applied. So how do I fix that? Well, I'm going to come over to the credit memos and I'm actually going to go to the payment. So when you do that automatic piece, it automatically creates a payment to apply the credits. So here's this payment and you can see that there's a here. I just want to really delete this. So let's just delete this payment that was created pretty much automatically because of that setting. And now when I come over to this invoice, it shows as $270. So I can send this to my customer and it will, it will email it to the customer and it will send it. as $270, which is what you wanted it to do. So I hope that helps you understand how to do this process and hopefully makes it nice and clear because you can see when that setting's on, it automatically applies the credit, which is a great feature, saves time, right? But sometimes it doesn't work. So you need to go back to your client account, go into the settings in the customer, find the transactions that are there, find that payment that was created by that automatic piece. Delete the payment and then shut that setting off, and you should be good to go to get that to be processed so that you can send the invoice without the payment showing as applying the credits. Thanks for watching. Bye now.
