How to Move a Credit Memo to Prepayment

How to move a credit memo to a prepayment

1. Key a manual invoice in Accounts Receivable for the amount to be moved from credit memo to prepay on the Name ID that has the credit memo. Code to a clearing account

   1. ACR > Invoices / Credit Memos > Invoice Maintenance > 1. Add Manual Invoice

      1. Open

         
      2. Open

         

2. Apply the existing credit memo to this manual invoice

   1. ACR > Invoices / Credit Memos > Apply Credit Memos. Key in the name ID and any search criteria, then select the credit memo to apply and the invoice keyed in step 1 to apply to

3. Key the new prepayment as normal. Note the bank code the prepay is using

   1. ACR > Payments / Prepayments > Payments / Prepayments > 1. Enter Payments Received

      1.  

   2. Choose the type of prepay

   3. The prepaid amount will be the amount of the original credit memo

4. In Bank, add a manual withdrawal to the bank account the prepay was keyed to and code to the same clearing account as the manual invoice

   1. BNK > Bank Account > Bank Maintenance > Choose the bank account keyed on the prepayment > 1. Add New Transaction

   2. Key manual withdrawal in the amount of the prepayment/ credit memo

   3. Code to the same clearing account as the manual invoice in step 1

5. The prepayment and the manual withdrawal can be reconciled against each other

Written by S. Pykare 10/2024