When syncing retainers, deposits, or invoices to QuickBooks, you may encounter the warning message: "This sync was cut off because payment was already applied QuickBooks-side."
Note: If you are using an outside payments processor such as QBO Payments, you should apply for early access to use MaterioPay, Materio's built-in payment solution offering an improved experience for both firms and clients. Learn more.
What the warning means
This warning means that a payment has been attached to the invoice directly in QuickBooks, without going through Materio first. Because Materio doesn't have any knowledge of the payment, we can't verify that the information in QuickBooks is correct and we can't sync our own payment information into QuickBooks.
Common causes include:
You recorded a payment directly in QuickBooks rather than in Materio first.
You used QuickBooks Payments to receive a payment directly in QuickBooks.
QuickBooks automatically applied open credit from the customer to the invoice.
To understand what caused the issue, click the link to view the invoice in QuickBooks, then inspect each payment on the invoice in QuickBooks to understand where it came from.
How to resolve the warning
If you recorded a payment directly in QuickBooks rather than in Materio first
The simplest, recommended way to use Materio's QuickBooks integration is as a one-way sync that flows from Materio into QuickBooks -- not the other way around. In this simplest, recommended setup, information entered directly in QuickBooks will not sync back from QuickBooks into Materio. This is by design and is why it's important to enter all information (including payments received) in Materio first rather than directly in QuickBooks.
To resolve this warning, first delete the payment you entered on QuickBooks. Then either enter the payment information on Materio, or click the "Retry sync" button to kick off a new sync. This time around, the invoice and all its payments should sync correctly from Materio to QuickBooks.
After correcting this one invoice, make sure to always enter your payments first in Materio and let them automatically sync into QuickBooks for you, rather than trying to do it the other way around.
If you used QuickBooks Payments to receive a payment directly in QuickBooks
We strongly recommend you accept online payments from your clients directly in Materio, rather than sending your clients to an external system for payment. Having your clients pay you directly in Materio is the simplest, most reliable way to request and track payments on each project. It also provides the best experience for your clients by not spreading them between multiple different systems.
Still, if your firm has an existing payment process through QuickBooks that cannot change, Materio offers an advanced feature called QuickBooks-side invoicing. You can use this feature to draft initial invoices in Materio but then move them to QuickBooks where you will send and receive payment for them. This allows you to use Materio for project management while continuing to use QuickBooks as your online payment processor.
To use QuickBooks-side invoicing to avoid this warning, on all future invoices, make sure to click the arrow to the right of the "Send" button, then choose "Move to QuickBooks" instead of "Send."
If QuickBooks automatically applied open credit from the customer to the invoice
First, turn off this automation in QuickBooks to prevent the issue in the future:
Navigate to the "Advanced" tab on your QuickBooks settings page.
Open the "Automations" section.
Toggle OFF the "Automatically apply credits" setting.
Optional: toggle OFF all the other automation settings as well (since the other automations cause similar issues in other areas).
Click "Save."
Then, fix the affected invoice:
In QuickBooks, void or delete QuickBooks' automatic credit application.
In Materio, click the "Retry sync" button to kick off a new sync. The invoice and all its payments should now sync correctly from Materio into QuickBooks.