How can I correct a payment recorded against the wrong invoice?

If a payment is recorded against the wrong invoice, you can delete the payment from the invoice and then reapply it to the correct invoices.
To correct the payment:

• Go to Sales on the left sidebar.
• Select Invoices under Invoices from the top module bar.
• Open the invoice where the payment was recorded incorrectly.
• Go to the Payments Received tab.
• Click the Delete icon next to the payment.
• In the pop-up that appears, click OK.

Once all the associated payments are deleted, open the payment in the Payments Received module and apply the excess payment to required invoices.