Here's where you will learn how to partially apply a Credit Memo.
To start, go to Accounts Receivable > Receive Payment.
Click Add.
Enter the Customer #, then click Load All to see all open invoices. Go to the Credits tab and select the credit(s) you want to apply. Once selected, the $ Total will appear in the Apply column.
You will notice the Credit Amount and Unapplied amount above change to reflect the amount.
Going back to the Invoices tab, select an invoice. You'll see the Amount Received amount increase as well as the Total Payment amount increase by the amount of that invoice.
Now, try selecting an invoice or invoices with a total that is greater than the remaining credit amount. Enter the credit amount in the Credit column of that invoice row. When you click out of the field, you will see the New Balance column update as well as the Unapplied amount and the Total Credit amount.
To pay the new balance, click the arrow in the New Balance column and the Payment column will update. The Amount Received and Total Payment amounts will also update.
However, if you don't want to use up the entire credit, you can de-select invoices to leave you with a remaining credit. To apply your unapplied credit, type the amount in the Credit column of that invoice line. The Unapplied Credit amount will decrease by that amount and the Total Credit will increase by that amount.
You will notice that the New Balance now shows a negative amount. Remove the value in the Payment column (because it is being paid by credit instead). The New Balance should be $0.
Go back to the Credits tab and change the amount in the Apply column to reflect how much of the credit will be used. The Credit Amount and Unapplied will both update.
Tip: If you know you will only be using a small amount of a credit, you can do this when you're in the Credits tab the first time.
Click Save.
Click Yes.
Your payment has successfully been added.
Back on Accounts Receivable > Receive Payment List, click Apply and you'll see your recent transactions appear. One line for each credit used (Paid By Debit Memo - you will see there is a remaining balance because the full credit wasn't used) and one line for each invoice paid with a credit (Paid By Credit Memo - the remaining balance is 0 because it was paid in full).
Navigate to Accounts Receivable > Credit Memo Issuance.
Click Apply. We now see an adjusted Credit Memo showing the original amount ($ Total), the amount that has been applied to other invoices so far ($ Applied), and the remaining balance (Balance).
The remaining balance can be refunded. This will transfer the remaining balance to a refund receipt. Read this article to learn how you can refund the balance of that credit memo.
See related: