How do I Allocate a Credit Note to an Invoice?

Summary

The following article explains how to allocate a credit note to an invoice. The general process is the same for Sales Ledger or Purchase Ledger.

More Information

• Go to " Purchase Ledger Payments", or " Sales Ledger Receipts".
• At "Account:" type in the account code if known, or search for an account.
• Press <Enter> twice to pull up a list of outstanding invoices and credits.
• Move to the credit note that you wish to allocate and press <F> if you are going to allocate the credit note in full. This will move the total amount from the "Balance" column to the "Payment" column.

If you want to allocate only part of the credit note and not the total value, then you should press <P> - Part Payment instead of <F> for Full and type in the amount that you want to allocate as a negative figure.

• Cursor down to the first invoice to which you wish to allocate the credit note and decide what to do based on the values of the credit note and the invoice.
  • If the credit note is of the same value as this invoice then you can press <F>. This will move the amount from the "Balance" column to the "Payment" column, and the overall total payment will be zero.
  • If the credit note is of a lesser value than this invoice, then you will need to press <P> for a part payment. Type the value of the credit note into the "Payment" column. Again the overall total payment should come back to zero.
  • If the credit note is of a greater value than this invoice, then you may need to use a combination of the previous two methods so that the overall payment value comes back to zero.

Under all circumstances, if you are allocating a credit note or group of credit notes to an invoice or group of invoices without making any other payment, the overall total payment that you post must come back to a value of zero.

• Press <Esc>.
• Enter the date for the allocation in the "Date:" field.
• In the "Cheque No./Comment:" type 'Allocation' for example.
• At the "Payment Centre:", enter the centre for the suspense account, usually 'Z990'. Avoid using your bank or cash account codes here.
• Press <Esc> and <Accept> to complete the allocation.

See also

• How do I find a supplier?
• How do I find a centre?
• How do I pay off an invoice from Purchase Ledger Postings?

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Keywords AND Misspellings

credit, credit note, purchase, posting