It's great that you followed my colleague's suggestion. However, there is a simpler way to delete the unapplied payment, Dianem1.

To delete the overpayment, first locate the unapplied transaction in the Customer Information window by checking if the OPEN BALANCE shows an amount. Then, double-click the transaction to open it. To confirm it isn’t linked to an invoice payment, use the SHOW dropdown menu to select Payments and Credits, and filter the date to match the invoice or payment date.

When you're in the Customer Payment window, you'll see the transaction listed as an overpayment available for future use. Look for the Delete option at the top of the screen to remove the credit.

This will ensure no unapplied credits remain. Please refer to the screenshot below for a visual guide.

Feel free to reply to this thread if you have any more questions.