Applying the Credit

Whether you apply the credit at the same time it is issued, or at a later date, the application process is the same and will be accomplished by completing boxes in the bottom half of the window. Applying a credit causes the balance of the Accounts Receivable Account and Sales Account (or other accounts) originally used to be reduced by the amount of the credit applied in each box corresponding to the sales account number. You may change any of these account numbers.

To apply a credit at the same time as it is entered

Figure: Applying a Credit

The mouse cursor will be in the Apply To Invoice Number box. Double click in this box to see a list of invoices for this customer. Unpaid invoices in the list will be marked as ``OPEN''. You must select an OPEN invoice to apply the credit. Credits can not be applied to CLOSED invoices. Click the line showing the invoice to which you want to apply this credit. If all invoices have already been paid, or closed, you will not be able to apply the credit but it will be saved for future application to other invoices or you may delete the credit memo. If the invoice is still Open (unpaid) the boxes showing the remaining Invoice Balance In Receivable, the Accounts Receivable Account Number and Sales Account Numbers and Amounts originally used to record this invoice will be automatically completed.

Click the Close button.

After selecting an invoice you will be ready to apply the credit in the bottom half of the Apply Account Receivable Credit window. The amounts and account numbers originally used for that invoice will be automatically placed in the appropriate boxes in the application window. Note; you may not change the Accounts Receivable Account Number originally used with this invoice.

The cursor will be in the Amount to Reduce Receivable box. Enter the amount of the credit to apply against this invoice in the Amount to Reduce Receivable box. (You do not need to apply the entire credit at one time.)

Next, if you want to use different accounts or amounts than the original invoice, enter the amount of the application to reduce sales or other accounts using any of the four GL Acct account number and amount boxes. You may change these account numbers. (Usually you will simply leave the account numbers as they were on the original invoice and apply the credit to the same accounts as were used on the original invoice. However, if you need to apply an amount against a different account double click the GL Acct box to see a list of other possible accounts. Then click the account you want to use.) The total amounts from the Sale, Other, and Opt GL Acct boxes amounts must equal the Amount to Reduce Receivable.

Click the Apply button to complete the credit application and update the customer, invoice, and credit files.

Note that the Amount Applied, Balance Available To Apply, and the Invoice Balance In Receivable shown in the window are automatically reduced.

If there is a balance of the credit remaining you may continue applying it by repeating this application process. Any unapplied amount of the credit will be saved for future application.

To apply a saved credit:

You may apply saved credits at any time. To apply saved credits;

Select:

Credit Selections -> Credit Adjustments -> Apply Credits

Select the customer to see a list of open credits and proceed to the Credit Item Selection Window. (Fig. ).

Figure: Credit Selection Window

In the Credit Item Selection Window select the credit you wish to apply by clicking on the line showing that credit. Click the Close button when you have selected the credit you want. When you have selected a credit and closed the list the Apply Credit window will appear. (Fig. ) When the window showing the credit data appears follow the same procedure as above for applying credits. Unapplied Credits will be saved until applied or deleted.