How to make a payment to customer for Credit Note on his account

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Dear Community,

We have a customer that has a credit note on his Sales Ledger account. He wants us to make a payment to cancel the credit note as no future business is anticipated in the near future.

Please can anyone advise how we do this?

Kind Regards,

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babubaskaran@outloo... 12 on at

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Hi Martyn,

Please refer the following links to apply credit note of a customer.

support.microsoft.com/.../952377

community.dynamics.com/.../customer-47-vendor-transactions.aspx

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Thomas Newcomb 1,810 on at

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Hi Martyn!

I would also recommend using the Customer/Vendor Consolidation as Babu has mentioned. Otherwise you could create a manual consolidation by creating a debit memo in Sales for the credit's amount and then create an Invoice in Payables for the amount that is needing to be paid to your customer.

Please let us know if you have any additional questions!

~Thomas Newcomb

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Microsoft Dynamics GP Support

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This posting is provided "AS IS" with no warranties, and confers no rights

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Community Member on at

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Thank you for the suggestions, however I wonder if this is the only way to carry out what we are trying to achieve.

In our case we do not sell anything to this Customer, but we have issued a Credit Note to the customer after he had satisfied all invoices. We then paid him an amount equal to the balance on the account, and it is this transaction we want to enter.

Is the only way to enter this transaction by creating a Vendor for the Customer as described in the articles?

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babubaskaran@outloo... 12 on at

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If you customer/vendor transactions there is a link between credit memo and payment for audit trial purpose. You can also do a manual consolidation as mentioned by Thomas.

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Justin Thorp 2,265 on at

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Hi,

If this is a situation that you run into quite a lot, then I'd recommend looking into the "Refund Checks" functionality. You can find this in the ReceivablesManagement.pdf (Open the pdf and search for "Refund").

If this situation doesn't happen very often, and you haven't yet issued the Credit Note, then I'd recommend entering a Return (Transactions - Sales - Transaction Entry). When creating this return be sure to enter a value in the "Check" field (This will not only leave the customer with a zero balance, but it will update bank rec).

If you have already created the Credit note, then you can do either:

1.) Void the Credit Note and create a Return as suggested above.

2.) Create a Debit Note to apply to the Credit Note (so the customer balance is now zero). Then create a transaction to update the checkbook (Transactions - Financial - Bank Transactions - Check, or Transactions - Financial - Miscellaneous Check).

Thanks,
Justin

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