How to Allocate a Credit Note to a Sale

Note: To create a credit note, see How to Credit a Customer Account.

To allocate credit, select the credit note in the Invoices list (menu Setup > Invoices). Then click File > New > Allocate Selected Credit. The Allocate Credit window will appear:

Allocate Credit

Enter the details into the following fields:

  • Customer: The name of the customer. This field is read-only.

  • Date: The date you allocated the credit.

  • Amount to Allocate: The amount of credit to allocate. This figure may be less than the full credit note amount.

  • ID: A unique number for this transaction.

  • Journal Memo: A description of this transaction for your records.

  • Type: This is the type of payment. This will always be 'Credit Allocation'.

  • Apply to Invoice: Tick the invoice to apply the credit to. See How To Create an Invoice for more information on creating invoices.

  • Total Amount Applied: This is the total of the 'Amount Applied' column and must match the 'Amount To Allocate' field.

  • Show paid invoices: Tick this box if you wish to allocate to a paid invoice. Note that this will result in the invoice being overpaid.

Click 'OK' to save the credit allocation. The new transaction will appear in the Transactions list (menu Window > Transactions).