Question

With the automatically apply payment feature, QBs always applies the payment amount in the Receive payment window to the oldest Invoice.

a-true
b-false

Answer 1

The assertion that QuickBooks automatically applies payments to the oldest invoice is false. Users can override this auto-apply feature and choose which invoices to apply payments to.

Step-by-step explanation:

The statement that with the automatically apply payment feature, QuickBooks (QBs) always applies the payment amount in the Receive payment window to the oldest Invoice is false. QuickBooks has a feature called Auto Apply Payments which, when enabled, does automatically apply payments to invoices. However, the user has the ability to change the application of the payment to a different invoice if so desired.

When a payment is received, QuickBooks defaults to applying it to the oldest outstanding invoice to help maintain the accounts in an orderly fashion. This is because doing so typically matches the standard accounting practice of first-in-first-out (FIFO). However, QuickBooks also provides flexibility, allowing the user to apply payments to any invoice that's been selected in the Receive Payment window. Users can easily deselect QuickBooks' automatic suggestion and choose a different invoice to apply the payment to if this better suits the circumstances of the payment or customer request.