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Showing Customer Credits

APD Toronto
APD Toronto asked
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Hi Experts,

I've issued my customer a Credit Memo for ABC Software for -$1,000 +13% tax, Total -$1,130.

I want to create a Invoice for the same customer for DEF Software for $2,000+tax and Credit ABC -$500, a sub-total of $1,500+tax = $1,695 Total.

So, my questions are:

1) How do I show the $500 CR for ABC +tax on the Invoice?

2) How do I view the balance owing for ABC of $500+tax?

Thank you,
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Business Consultant (Owner)
Most Valuable Expert 2012
Expert of the Year 2018
Commented:
Credit memos and invoices are separate. In most cases the invoice that gets the credit has probably already been issue. So you want to keep them separate for the sake of your customers.

When you next receive a payment (may be partial payment for example), in the payment screen, near the bottom, there is a selection screen to accept and match the credit memo.

I have used this and it works.  Remember the two devices are separate. You can put a memo on the invoice (memo field at the bottom) that says the invoice is accompanied by the credit. But the invoice itself needs to be for the full amount because it is the credit that offsets. And that is done in the "receive payment" area.
APD TorontoSoftware Developer

Author

Commented:
Thank you that works!
JohnBusiness Consultant (Owner)
Most Valuable Expert 2012
Expert of the Year 2018

Commented:
@APD_Toronto  - You are very welcome. Doing it as we agreed above is also good accounting practice. Thanks.