How to reverse an open credit...

[Chris Kelleher]

We have an open credit taken by a customer on their account. They have no
more open invoices to apply the payment to and we need to write off the
credit to returns and allowances.

How do we do this?

Robert H. Bierasinski
Information Systems Manager
Whiting Door Manufacturing Corp.
113 Cedar Street
Akron, NY 14001
(716) 542-5427
email: rbierasinski@whitingdoor.com
website: www.whitingdoor.com

 

[Chris Kelleher]

> Hello Robert,
> First, an invoice must be created for an amount equal to the open credit.
> On the invoice account distribution record, use the number
> for the returns and allowances account. After posting, get the reference
> number for the open credit from the customer's posted transactions screen,
> go into payments, use the open credit reference number as thought it was a
> check number and do a payment reapply. Be sure to use the current date as
> the check date as a payment reapply will create a journal entry with the
> original transaction's default date unless overridden. Reapply the open
> credit against the invoice you have just created. After posting the
> transaction is complete.
>
> Regards,
> Nanette Bruce, Implementation Consultant
> Meaden & Moore, Ltd.
> Cleveland