There is a feature in The Business Edge that will enable you to automatically apply a Credit Memo (negative Invoice) to a Customer Invoice. This is helpful if you created a Credit Memo and want to apply it to a specific Invoice, rather than mail it to the Customer for them to deduct. This would save you the steps of selecting the positive and negative invoice in cash receipts to apply them at a later time.
If you want to send a Credit Invoice to your Customer and let them decide which Invoice they would like to apply the Credit to, you do not want to use this procedure.
To automatically apply a Credit Memo to an open invoice you will enter the Order and create the Invoice as usual. When you are on the Final Screen of the Invoice creation, you can select F12, Apply Credit Memo.
You will then be prompted to enter the Invoice number you would like the Credit applied to. Enter the Invoice number and select Yes at the Apply This? field.
In this example Credit Invoice 10119 will automatically be applied to Invoice 10118 when the Credit Invoice is updated.
Prior to updating the Credit Memo you can see the open Invoices in Customer, Inquiry, Open Invoices. The blue (!) indicates the Credit Memo Invoice has not been updated to the General Ledger.
In the instance below, Credit Invoice 10119 has been updated to the General Ledger. Since the Credit Invoice is the same amount as the Open Invoice, when the Credit Invoice is updated both Invoices will be paid. If the Credit Invoice is less than the current open Invoice there will be a remaining balance. If the Credit Invoice is more than the balance of the open Invoice the invoice will have a negative balance.
