Applying Prepayments and Credit Notes Using the Payment Entry Screen

Use the A/P Payment Entry detail table to:

• Apply new payments to outstanding transactions.
• Apply previously posted prepayments and credit notes.
• Change unposted payment applications.
• Enter adjustments to invoices, credit notes, or debit notes (if you use the Allow Adjustments In Payment Batch option).
• View the history of applications to a document.

To apply a prepayment or credit note:

1. Open Accounts Payable > A/P Transactions > Payment Entry.
2. Enter the Document Number of the prepayment or credit note you want to apply.

   If you have selected Apply Document as the payment transaction type, Accounts Payable will display the amount that you can apply in the Unapplied Amount field on the Payment Amounts panel.

3. If you use optional fields and you want to view or edit any payment optional fields automatically assigned to this transaction, click the Edit link beside the Optional Fields option.

   The A/P Optional Fields screen appears, letting you edit or delete the optional fields assigned to this transaction. You an also assign different payment optional fields.

4. If you know the numbers of the documents to which you are applying the invoice, or there are a large number of documents for this vendor, clear the Filter Documents option. Otherwise, select this option.

   • If you are using Filter Documents:

     1. Select the type of documents you want to display (All, Invoice, or Debit Note).
     2. Select the order by which to list documents (Document Number, PO Number, Due Date, Order Number, Document Date, Current Balance, or Original Document Number).
     3. Specify the starting number, date, or balance, depending on the choice you made for ordering documents.
     4. Click the Refresh button.
     5. For each document to which you want to apply the payment, select Yes in the Apply column.
     6. In the Applied Amount field, enter the amount to apply.

        By default, the entire amount is applied, and the full discount is taken. However, you can post the transaction without fully applying the prepayment or credit note, leaving some to be applied at a later date.

        You cannot apply more than the total amount of the payment.

     7. If an early-payment discount applies to the invoice, enter the amount in the Discount Taken column.

        You can enter a discount taken that exceeds the discount specified on the original invoice.

   • If you are not using Filter Documents:

     1. In the Document Number field, enter the document number.
     2. In the Payment Number field, enter "1", or enter the number of the payment if the document has a multiple payment schedule.
     3. In the Applied Amount field, enter the amount to apply.
     4. If you are entering a partial payment for a job‑related document, choose an apply method for the payment, and edit the distribution for the payment, if necessary. See step 7.
     5. If there is a discount amount, enter it in the Discount Available field.