Applying credit balance invoices during payment processing

This section outlines the procedure to be used in order to apply a credit memo invoice at the same time that you are applying a customer payment.

1.  Ensure that the Daily Startup Procedures have been successfully completed.

2.  Identify which customers have open invoice balances which need to be applied against each other and which invoices and amounts should be offset.  This information will normally be on the remittance advice sent to you by the customer making the payment.  You may also identify the appropriate customers and invoices by reviewing an Accounts Receivable Aging report.

3.  Select the Cash Application program from the Accounts Receivable Menu and verify or change the information displayed by the program as required.

4.  Find the appropriate customer record using any of the several different methods which are available in the Cash Application program.

5.  Enter the currency, check or other document number and the amount of the payment being made by the customer (this should be the actual check or payment amount without including the credit memos to be applied).  Note: This procedure should only be used when you are applying a customer payment.  If you wish to apply a credit memo without applying a payment please see the next section of this document.

6.  Verify or change the Pay Code to be used for the transaction.  The Pay Code field is used to indicate the type of payment being applied to the customer invoices and it should be set to the appropriate value (i.e. CSH, CHK, AX, MC, WT, etc) based on the payment being made.

7.  Load the invoices and credits to be processed into the program using any of the several methods that are supported by the Cash Application program (Find Invoice, Find Invoice for Customer, Load all Invoices for Customer).

8.  Select the credit memo amounts which you would like to apply to the open invoices. You may specify the amount to apply for each credit invoice by:

•      Double clicking the line.  If a check number and amount is entered in the top section of the program and the operator double clicks a valid credit memo, the open amount of the credit memo is defaulted into the Amount to Apply field for the invoice.

•      Selecting the credit memo and using the Apply Line Button to default the open amount of the credit memo into the Amount to Apply

•      Highlighting or selecting the appropriate credit memo and using the Zoom option to activate the Paytemp Detail Panel.  When the Paytemp Detail panel is activated the cursor will be positioned in the Amount to Apply window.  Once the Paytemp Detail panel is displayed, you may manually specify the amount of the credit to be applied (and any portions that should be written off).  The amount to apply should be preceded by a negative sign in this case.

Once you have specified the Amount to Apply for a credit, the Cash Application  program will update (increase) the amount displayed in the To Apply field of the Payment Entry program by the amount of the credit that you have selected.

9.  Once the credit memo amounts from the remittance advice or Aging have been selected, you should apply the total amount shown in the To Apply field of the Payment Entry program to the appropriate open invoices and SAVE the transaction.

More:

Applying credit memos to open invoices in the Payment Entry program without applying a payment