When syncing billing documents to QuickBooks, you may encounter the warning message: "This sync was cut off because a retainer or credit applied as payment has insufficient funds QuickBooks-side."
What the warning means
This warning affects invoices that have at least one retainer, deposit, or credit applied as payment to them. What all these have in common is that they all rely on drawing funds for payment from a QuickBooks Credit Memo. This warning means that when Materio went to draw funds from that QuickBooks Credit Memo, the Credit Memo didn't have enough funds left on it QuickBooks-side.
Diagnosing the issue
This issue has two main causes:
You made changes directly in QuickBooks rather than in Materio first.
QuickBooks automatically applied a Credit Memo to the wrong invoice.
To diagnose which of these is the cause of your warning:
Open the Materio invoice with the warning on it.
Note the doc number of each retainer, deposit, or credit applied to that invoice.
Search in QuickBooks for each noted doc number to find the associated Credit Memo.
Inspect each QuickBooks Credit Memo for signs of a payment that was drawn from it incorrectly or an edit that may have reduced its balance incorrectly. You should find at least one change or payment that was made directly in QuickBooks but never represented in Materio.
Resolving the warning
If you made changes directly in QuickBooks rather than in Materio first
First delete any retainer, deposit, or credit applications you created directly in QuickBooks, and undo any edits you made directly in QuickBooks. Then, click the "Retry sync" button to kick off a new sync. This time around, the invoice and all its payments (including those applied from credit) should sync correctly from Materio to QuickBooks.
Going forward, make sure to enter everything first in Materio and let everything automatically sync into QuickBooks for you, rather than the other way around.
If QuickBooks automatically applied the Credit Memo to the wrong 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, delete QuickBooks' automatic credit application.
In Materio, click the "Retry sync" button to kick off a new sync. The invoice and all its payments, including those from credits, should now sync correctly from Materio into QuickBooks.