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Dynamics 365 Community / Forums / Microsoft Dynamics SL (Archived) / Credit amount on custo...
Microsoft Dynamics SL (Archived)

Credit amount on customer account in AR to be paid by AP check

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Posted on by Community Member

Hello. Hope somebody can help us out with this. My employer owes a customer a certain amount due to returns, etc. The customer has found a new supplier and will not order any more items from us. We would like to refund the customer, since there will be no future AR invoices, by issuing a check from AP.  How do we apply the AP check to the credit balance in AR and at the same time get the credit memos in the aging cleared out? We are using Microsoft Dynamics SL 7.

Thanks and regards, Camilla

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    Community Member on at

    There is not a way to apply an AP item to an AR item.  The best way to handle this is to create a debit memo on the AR side for the amount of the refund using either a GL clearing account as the revenue account or the revenue account that the original invoice hit.  You then apply the credit to that debit memo thereby clearing the AR side.  You then set up the customer as a vendor on the AP side, create a voucher for the amount of the refund using the same GL account for the expense that you used when you created the debit memo (thereby washing out the activity to that GL account between the AR and AP side) and cut an AP check for that new vendor.

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    Community Member on at

    Rick, Thank you very much for your answer. This resolved the problem.

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