AR Apply a Credit Memo or Unapplied Cash

There are two ways to apply a Credit Memo (or Unapplied Cash) to invoices.

To distribute a credit memo one invoice at a time, use Option 1. This option is helpful when processing small quantities of invoices that can be paid in full with the available credit memo.

To manually control the payment amount on an invoice use Option 2. This option is useful if you want to control exactly how much of the memo goes to specific invoices.

Note: Users do not have to select a transaction type or employee when selecting Unapplied Cash.

Option 1: Automatically Apply a Credit Memo or Unapplied Cash

1. Navigate to Main Menu > Back Office > AR > Home sub-page.
   
   
2. Select the AR Batch or Create a New AR Batch as necessary. The Post Payment sub-page will open.
   
   
3. Create a New AR Invoice or select all necessary credit memos and invoices, but do not process or apply them to the batch.
   
   
4. Type the invoice number in a new row in the lower grid. 
   
   
5. Press the keyboard's Tab key.

• Some fields in the row will automatically populate.
• Click the arrow in the Payment By section to open the drop-down menu.
• Select the correct Credit Memo (CM) or Unapplied Cash (UC) invoice.
• Press the keyboard's Tab key.
• Press Enter.

• A new line appears with all the credit memo information. The payment amount of the invoice is automatically set to the full amount due or to the memo amount, whichever is lower.
  
  
• If there are credit memos or invoices remaining, repeat steps 4–8 until all relevant invoices and memos are applied.
  
  
• To apply multiple credit memos to a single invoice, repeat steps 4–8 for each memo applied.
  
  
• Click Process Payment once the batch is complete and ready to be closed.

Option 2: Distribute Available Credit Between Invoices

1. Navigate to the AR Home screen through the Back Office Menu Tree.
   
   
2. Select the AR Batch or Create a New Batch if necessary.
   
   
3. Create a New AR Invoice or select all necessary credit memos and invoices, but do not process or apply them to the batch.
   
   
4. Click Select Invoices.
   
   
5. Change the payment amount(s) on the relevant invoices so that they total the credit memo amount.

• This method enables the control of how much will be paid to each invoice.
• Ensure the total payment amount is equal to the credit memo amount and all the relevant invoices and memos are selected.
• Click Insert Invoices.
• Click Process Payment once the batch is complete and ready to be closed.