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Applying a Customer Payment On Account (Create a Credit Memo)

Applying a Customer Payment On Account (Create a Credit Memo)​

A credit memo is issued to reduce a customer's balance due to returns, pricing errors, discounts, service issues, billing mistakes, or as a goodwill gesture.

Choose an open batch or create a new batch > Select the Clerk > Select the Deposit Date > Select the G/L Eff Date > Select the customer > Input a reference number (can be the date shown as 062325 or a check number) > select a pay type > input the amount you wish to add as a credit > Input a Description (credit memo for xyz) > In the Action Box, Select On Account > select update > Click Save > then you can either post it right then or at the end of the day when you want to post the entire batch.

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Hints & Tips

  • You can also enter the letter O in the Action field when no open (outstanding) invoices exist or when the invoice distribution is unknown. A credit memo will be created. Note: The credit memo can later be applied to invoices through the Apply Credit Memos program.