Credit memo's

Kbechtle

How do I do a partial application of a credit memo to an invoice for a customer?

Savatage

Here's the method we use.

I'm not using 3.7 and I don't if has been changed, but it might be helpful anyway.

here's what the customersource says, you might want to print it out to read:

Issue:
How to partially apply a credit memo to one or more invoices, so that each one is reduced by an amount but is not closed, and the general ledger is not affected.

Resolution:
Using the Sales Journal, for the first line enter the following:

1. Enter the Date.
2. Leave the Document Type blank.
3. Document Number anything you would like.
4. Account Type "C" for customer.
5. Customer Account Number.
6. In the Amount field, enter a positive number for the amount of the credit memo that you are going to apply to invoices. If you apply the entire credit memo, this will make the Remaining Amount of the credit memo zero. Do not over apply.
7. Balancing Account is G/L Account.
8. Leave Balance Account blank.
9. Applies to Document Type should be "C" for credit memo.
10. Press F6 in the Applies To Doc No. field and select the credit memo. Press OK.

The second and following lines will be used to apply the credit memo to several invoices. All entries are the same as above with the exception of:

1. Enter a negative number for the amount you are applying to the particular invoice.
2. The Applies to Document Type should be "I" for invoice.
3. Press F6 in the Applies To Doc No. field and select the desired invoice. Press OK.

After posting, it will make entries into the Customer Ledger and also the General Ledger. However, since we left the balancing account blank on both entries, they debit and credit the same account number in the General Ledger (the customer's Accounts Receivable account) and make a wash entry into the Customer Ledger. The Credit Memo has been used and the Invoices will be reduced.
For example:

In the Customer Ledger Entry, assume that you have the following entries:

1. The initial Sales transactions was
Document Type = Invoice, Document # = G01001, Account Type Customer, Customer No = 10000, Amount= 5,000.00, Bal. Account No.=41100

Next, the customer is granted a Credit for this Invoice and for a previous invoice transaction. The amount of the credit is $2,000.

2. Document Type = Credit Memo, Document # = G01002, Customer No = 10000, Amount= -2,000.00, Bal. Account No.=41100

In this example, we will assume both lines above have been posted without applying any amounts. Therefore, if we want to only apply $1,000 of the $2,000 credit against Invoice G01001, this is what you would have to do.

You would create the two lines below:

1. Document Type = Blank, Document # = G01002, Customer No = 10000, Amount= 1,000.00, Bal. Account No.=41100, Applies-to Doc. No.=G01002

2. Document Type = Blank, Document # = G01001, Customer No = 10000, Amount= -1,000.00, Bal. Account No.=41100, Applies-to Doc. No.=G01001

By using the Blank document type, you don’t affect any transaction type specifically. However, it allows for the user to modify the remaining amount of the original Invoice and Credit Memo and tie this application journal entry to the original transactions.

Kbechtle

This works great! Thank you for the help!

Krystal

Savatage

no prob \:D/