Applying Credit Memos (BC365)

a purchase credit memo is a document issued by the seller of goods or services to the buyer, reducing the amount the buyer owes to the seller under the terms of an earlier invoice there are two methods in business central to apply credits copying document lines or manually creating the lines applies to doc method step 1 navigate to the vendor navigate to the vendor you would like to apply the memo to click purchasing and then vendors next, click on the vendor you would like to create the memo for on the vendor card, select new document and then click on purchase credit memo step 2 create & post the credit memo next, create the credit memo by entering the values required once done, click post step 3 apply the credit memo navigate back to the vendor card and select vendor > vendor ledger entries locate the credit memo and click on the three dots beside it select apply entries find the invoice you would like to apply the credit to set the id by selecting the invoice and clicking set applies to id when done, select post application step 4 pay reduced invoice(s) pay the invoice as you would normally either from the pay invoices page copying document lines step 1 navigate to purchase credit memos navigate to the purchase credit memos page from the purchasing module select the + new button to create a new purchase credit memo step 2 copy credit memo lines from an existing invoice to apply lines from an existing posted invoice, prepare → copy document select document type posted invoice and document no to apply the credit memo once selected, select ok to copy the complete document the invoice details and line items will now copy into the credit memo page step 3 modify the credit memo modify the memo by deleting the lines or changing the quantity once confirmed with the actual credit memo from the vendor, enter the number on the vendor cr memo no field step 4 confirm applies to doc no confirm the applies to do no is correct and the credit memo will be applied to the right invoice the invoice must be marked as open to apply the credit memo and pay the invoice with a reduced amount due note this field will automatically be filled with the invoice number of the document used to copy the line items from if this is incorrect or the invoice is closed, you must change this value to the open invoice you would like to reduce the balance of before posting the credit memo step 5 post the credit memo after confirming all details, post the document by selecting post step 6 confirm the reduced amount on the posted purchase invoice page, locate the invoice on which you applied the credit memo on this page, you can confirm that the amount has been successfully reduced before attempting to pay the invoice step 7 pay reduced invoice(s) pay the invoice as you would normally either from the pay invoices page manually creating document lines step 1 navigate to purchase credit memos navigate to the purchase credit memos page from the purchasing module select the + new button to create a new purchase credit memo step 2 manually create the document lines next, manually enter the vendor name, line items and vendor credit no to the credit memo step 3 add applies to doc no add the applies to do no to ensure the credit memo will be applied to the correct invoice the invoice must be marked as open to apply the credit memo and pay the invoice with a reduced amount due note if this is incorrect or the invoice is closed, you must change this value to the open invoice you would like to reduce the balance of before posting the credit memo step 4 post the credit memo after confirming all details, post the document by selecting post step 5 confirm the reduced amount on the posted purchase invoice page, locate the invoice on which you applied the credit memo on this page, you can confirm that the amount has been successfully reduced before attempting to pay the invoice step 6 pay reduced invoices(s) pay the invoice as you would normally either from the pay invoices page limitations credit memos cannot be applied at the payment journal level they need to be applied to a document before attempting a payment through the plugin failure to apply will cause the plugin to ignore any credits and remit the full invoice amount credit memos must be less than the remaining amount due on the invoice to successfully be applied