Settling credit notes

You can choose to settle a customer credit in the following ways:

■	Apply credit to an open invoice. Applying the credit to one or more of the customer’s open invoices reduces the amount the customer owes you.

■	Record a refund. If the customer does not have any open invoices, you can record a refund payment for the amount of the customer credit.

To apply a customer credit to an open invoice

1	Go to the Sales command centre and click Sales Register. The Sales Register window appears.

2	Click the Returns & Credits tab. A list of customer credits appears.

3	If the credit you want to settle does not appear, select Customer from the Search By list to display a credit for a particular customer. Enter the customer’s name in the adjacent field. A list of credits for that customer appears.

4	Select the credit you want to apply and click Apply to Sale. The Settle Returns & Credits window appears, listing all open invoices assigned to the customer.

If the Apply Customer Payments Automatically to Oldest Invoice First preference is set, amounts will appear next to the oldest invoices in the Amount Applied column.

However, you can apply the credit amount to any one transaction or you can divide it among many transactions in the list. Note that the total amount you apply in the Amount Applied column must equal the amount that appears in the Credit Amount field.

5	If you want to apply part of a customer credit to any unpaid finance charges they have accrued, enter an amount in the Finance Charge field.

6	Click Record to apply the credit.

To record a refund payment

1	Go to the Sales command centre and click Sales Register. The Sales Register window appears.

2	Click the Returns & Credits tab. A list of customer credits appears.

3	If the credit you want to settle does not appear, select Customer from the Search By list. Enter the customer’s name in the adjacent field and then press Tab. A list of credits for that customer appears.

4	In the Account field, enter or select an account.

For example, if you’re paying a credit card refund and you group all your credit card sales, choose your undeposited funds account.

5	If you want to, change other information in the window, such as the transaction date.

6	If you are paying by cheque and you have already written it, select the Cheque Already Printed option.

7	Specify how you want to send a remittance advice by selecting a delivery option from the Remittance Advice Delivery Status list.

8	Click Record.