PART B – Applying the A/P credit memo against the customer's balance

In this section, you will enter an adjustment for the amount that you want to short pay the Accounts Payable invoice.

Part A, creates a credit memo to "back charge" the customer/vendor in the amount he/she owes on the Accounts Receivable account. Part B, "pays" the invoice using the funds created in Part A.

  1. On the Site Map, click Accounts Receivable > Data Entry > Cash Receipts / Adjustment Entry.

  2. Complete the Customer code and Transaction type fields.
    Tip: Use an adjustment transaction type that uses the suspense or contra account used in the G/L account field in Part A of this procedure.
  3. Enter the transaction date and dollar amount.
    Note: The dollar amount entered here is the amount that you are going to short pay your Accounts Payable invoice.

  4. Apply the adjustment against the outstanding invoice and then click OK until the Update button displays.

  5. Click the Update button.

  6. In the Cash Receipts Journal screen, complete Customer, From G/L date, and Through G/L date fields or press Enter to accept the software defaults.

  7. Click Preview to view the Cash Receipts Journal.

  8. In the Cash Receipts Update screen, select Continue and then click OK until you return to the Site Map.