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Apply vendor credit memo at time of payment

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I have a vendor that has an invoice for $1000, and has an open Credit memo for $100. Is it possible to select both of these for "Create Payment" and it creates two lines, a refund line for the credit memo and a Payment for the invoice. Is it possible to have these combine into one Check, or do I have to go and apply the credit memo to the invoice first? If I don't and try and create one check, it gives me the message below:

pastedimage1652710556491v1.png

Thanks,

Kevin

  • Ron Bray Profile Picture
    Ron Bray 15 on at
    RE: Apply vendor credit memo at time of payment

    Our check is a custom layout. I'll reach out to our developer to get this changed. I appreciate your help!

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    Dallefeld Profile Picture
    Dallefeld 11,425 User Group Leader on at
    RE: Apply vendor credit memo at time of payment

    Do you have any customization on your checks? It's a simple filter to have a developer fix in the check.

  • Ron Bray Profile Picture
    Ron Bray 15 on at
    RE: Apply vendor credit memo at time of payment

    It's true in my case. When I apply entries from the vendor ledger, the remaining amount of the invoice to which the credit memo was applied is all that shows on the check stub when printing checks. The credit memo doesn't show anywhere. Are there settings somewhere that could be causing this (only showing the invoice with the reduced remaining amount vs showing the full invoice amount and the credit memo that net to the reduced amount)?

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    Dallefeld Profile Picture
    Dallefeld 11,425 User Group Leader on at
    RE: Apply vendor credit memo at time of payment

    That's not true, using the Apply Entries has everything that is being paid, including invoices and credit memos, print on the check stub. Standard functionality prints the invoices and credit memos on the check stub when you properly prepare the payment journal using the Apply Entries in the payment journal.

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    Amit Baru Profile Picture
    Amit Baru 3,025 on at
    RE: Apply vendor credit memo at time of payment

    Hi,

    Pls apply after the posting.

    Regards

    Amit Sharma

  • Ron Bray Profile Picture
    Ron Bray 15 on at
    RE: Apply vendor credit memo at time of payment

    Kim,

    The shortcoming with this method is that the applied credit memo does not show up on the list of invoices on the check stub. Only the reduced amount for the invoice to which the credit was applied shows on the stub, leaving the vendor wondering why it was paid short. There is also not an easy way to print the application of the credit to the invoice so that it could be printed and included along with the check to inform the vendor of the application. Do you know of any functionality that addresses these issues?

    Thanks,

    Ron

  • Suggested answer
    Dallefeld Profile Picture
    Dallefeld 11,425 User Group Leader on at
    RE: Apply vendor credit memo at time of payment

    Yes, this is possible. Rather than put your vendor invoices on lines in the face of the journal, use the Process>>Apply Entries and select your invoices and credit memos. When you press OK in the Apply Entries, the total amount will return to the payment journal line (in your case $900).

    This is the method that you want to use when you start sending payments via ACH. To see the vendors and documents being scheduled for payment in the journal, run the Vendor PrePayment Report.

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