Apply an AR credit to an invoice

After you enter credits to decrease the amount of money a customer owes, you can apply that credit to an invoice or multiple invoices.

In a multi-entity company, Sage Intacct applies credit to the owning entity first, and then applies credit from the oldest to the newest invoices. If you enable your company to limit credits to the owning entity, then credits are applied to the invoices of the owning entity and no other. Any remaining credit is reserved for other invoices owned by that entity.

Apply credits from Receive Payments

1. Go to Accounts Receivable > All > Invoices, and then select Add (circle) next to Receive payments - New!.
   • To receive a payment in addition to applying credits, enter the Payment amount.
   • To apply credits without recording a payment receipt, verify that the Payment amount is 0.00.
2. Select the customer and select Show invoices.
3. Select the invoices or memos that you want to apply credit to.
4. Select Add and close.
5. Apply credits using one of the following methods:
   Apply an advance across multiple invoices

   1. Select Apply credits. 
      If you do not see the Apply credits option

      Apply credits is available when you receive a payment from a single customer only.

   2. Select the credit that you want to apply.
      The total amount of the credits to apply must be less than the sum amount of the selected invoices. Adjust the Credits to apply amount as needed.
   3. Select Save.

      Credits you select and apply here are distributed across the selected invoices using the waterfall method. You can edit the Credits to apply for invoices.

   Apply a credit to a single invoice

   1. Select the Credits available amount for the invoice to see the list of available credits.
   2. Select the credit you want to apply.

      Any credit you select from here is applied in full. If the credit amount exceeds the amount of the invoice, edit the Credits to apply field accordingly.

   3. Optionally, adjust Credits to apply amount.
   4. Select Save.

      The full amount appears in the Credits to apply column and the Payment amount automatically adjusts accordingly.

   When you apply a credit using the Credits available link, the credit state changes to selected and the credit is essentially locked. This means that if there is a leftover balance on the credit, that amount is not available to apply to another invoice until you post the customer payment. If you want to apply the credit to more than one invoice selected in this payment, use Apply credits instead.
   Apply a credit to a specific line item

   1. Select Line details to drill down to the line items of a specific invoice.
   2. Select Credits available to drill down to credits.
   3. Select the credit that you want to apply.
   4. Optionally, adjust the Credits to apply amount.
   5. Select Save.
6. Optionally, update payment information and other posting details.
7. Select Post.

   After you apply credit, you can view the posting details from the adjustment record. Go to the adjustment record and select View details in the summary header.

Apply a credit from the AR adjustments list

Apply individual credits from the AR adjustments list using Apply more.

1. Go to Accounts Receivable > All > Payments > Adjustments.
2. Find the row with the credit that you want to apply.
3. Select Apply more next to the credit.

   The Select invoices for payment page pops up and shows all open invoices for the associated customer.

4. Select the invoices you want to apply the credit to.
5. Select Add and close.
6. The credit amount is applied to the selected invoices using the waterfall payment method.

   You can adjust the amount to apply in the Credits to apply field.

7. If you are accepting payment at the same time, enter the payment amount in Amount received, under Payment Information.

8. If necessary, you can adjust the Payment amount for individual invoices to change the distribution.

   Optionally, edit payment details such as Account, Date received, and Payment date.
9. Select Post.

Apply multiple credits from the AR adjustments list

Apply multiple credits from the AR adjustments list using Apply credits.

1. Go to Accounts Receivable > All > Payments > Adjustments.
2. Select the rows with the credits that you want to apply.

   If you are selecting multiple credits, be sure select credits for the same customer and the same transaction currency.

3. Select Apply credits above the list.
4. Select Add and close.
5. The credit amount is applied to the selected invoices using the waterfall payment method.

   You can adjust the amount to apply in the Credits to apply field.

6. If you are accepting payment at the same time, enter the payment amount in Amount received, under Payment Information.

7. If necessary, you can adjust the Payment amount for individual invoices to change the distribution.

   Optionally, edit payment details such as Account, Date received, and Payment date.
8. Select Post.

Change the amount credited after applying it

You can't change the credited amount after you apply and save it. You can reverse the credit under the following conditions:

• If you recorded a payment and applied an AR credit, you can reverse the payment. The credit is also reversed and available again.
• If you simply applied an AR credit, you can unapply the credit from the Posted Payments list. After you unapply credit, it is available again.
• If the credit came from an Order Entry transaction, you can't reverse it. To resolve this issue, create a new transaction (a debit memo from AR, a sales debit memo, or even an invoice, depending on what's affected). For example, inventory or quantities require a sales debit memo.