I have 2003 Contractor edition.

I am having a problem with using credits, the only time we ever have them is if a customer overpays accidentally, they will instruct us to apply to overpayment to thier next invoice, which could be weeks later. If I go to the "receive payments" screen, type in that customers name, the credit amount appears in the bottom right corner marked "unused credits".

I've tried 2 ways

I first hit the "set credits" and it is blank shows no credits, then I'll click on an open invoice.
& then vice versa
neither way allows me to use the credit/overpayment

The only way I have been able to figure out how to use these credits is to browse back through all my receeive payments, until I find that payment in which the customer overpaid, then I can use it.

I hope that this is clear(somewhat), thanks.

If you have created a new invoice and want to apply the credit to it then first create the new invoice and record it but dont' print it out. Make sure you have the To Be Printed box checked. Then go to Receive Payments and select that job name. Do not enter anything else into the top section such as an amount. Right below that section make sure you have the box checked that says: Show Discount and Credit Info. Then drop down and in the first column click on the invoice you want to apply the credit (overpayment) to. You will get a warning message about the payment not being large enought to cover this invoice. Ignore it and click OK to get rid of it. Then click the Set Credits button and select the credit and click Done. Then record this transaction. Now, if your invoice form has been customized to show the Subtotal, Payments/Credits and Balance Due, when you go File at the top menu bar and select Print Forms and select Invoice, and select that invoice, it will print out showing the subtotal, the credits applied against that total, and the Balance Due. You won't see this on your screen, but it will show when you print it out or when you click on the Print Preview button.
If you open the invoice screen and click on Previous at the top left of it till you see an invoice you have already done, and then click the small arrow next to Print at the top and select Preview, you can readily see if you have these fields already turned on. If you see Subtotal, Sales Tax, Total, Payments & Credits and Balance Due on your invoice then they are already turned on and can be used. If you don't see them then you will have to customize your invoice form and turn them on.
If you need help on how to do that post back.

Soho
Thanks for your response, but those are the exact procedures that I follow, when I click set credits, there is nothing there. It is only listed on the bottom right of the payment screen as unused credits. If I intentionally create a credit memo for a customer then the above procedure works. When a customer overpays, I always record the full amount of the check in the receive payments window,even if it is an overpayment, so that the amount,check # etc. are all correct for record keeping. Any thoughts?