Use this procedure to apply credit memo's in Accounts Receivable.
Preparation: You must first create a credit memo invoice. See Creating a Credit Memo.
You will need the following information to post each entry:
General Ledger Cash Account Number
Deposit Date
Payment Type
Customer Number
Check Number
Payment Amount
Invoice Number(s) being applied
Amount(s) being applied
How to apply credit memos:
- On the Accounts Receivable Menu, click Payments.
- On the GL Cash Account box, type or select the account where the you will post the payments, even though the payment amount will be zero. For more information on GL Cash Accounts, see Learning about Default Cash Accounts.
- In the Deposit Date box, enter a deposit date.
- Leave the Payment Type box defaulted as Check.
- In the Customer Number box, type or select the Customer number from the list.
- In the Check Number box, type any number you associate with credit memo's (i.e. 999) as a check number.
- In the Payment Amount box, and type $0.00.
- In the Outstanding Invoice section, find the Credit Memo invoice. Remember that the amount will display in parentheses. Select the Apply? check box next to the credit memo invoice. Once you click the Apply? check box, the invoice moves from the Outstanding Invoices section to the Applied Invoices section. The Applied Amount will display in red and in parentheses. Notice that the Amount Left is no longer $0.00, but the amount of the credit memo.
Now apply the Invoice to the Credit Memo
- In the Outstanding Invoice section, select the Apply? check box next to the invoice you wish to apply to the Credit Memo. The invoice will move to the Invoices Applied section and the Amount Left will change to $0.00, which means that the entire Credit Memo has now been applied to the invoice. The Invoice that a credit memo is applied to does NOT need to equal the amount of the credit memo. You may apply a credit memo to more than one invoice.
- Click Close to return to the Accounts Receivable Main Menu.