Apply a Payment Receipt to a Debit Memo

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Debit memos are originally issued using Invoice Data Entry and are reflected on the customer's invoices and/or statements. On occasion, you may want to use Cash Receipts Entry to apply a cash, credit card, or ACH payment toward a specific debit memo for a customer.

Note You can also use the following procedure to apply a cash, credit card, or ACH payment receipt to a finance charge; however, you must enter a valid finance charge number from the Open Invoice file with a suffix of -FC. You can then distribute all or a portion of the posting amount to the finance charge.

To apply a payment receipt to a debit memo

  1. Select Accounts Receivable Main menu > Cash Receipts Entry. If you have batch processing enabled, the Cash Receipts Entry Batch window appears. Enter the batch number, and click Accept.

  2. In the Cash Receipts Deposit  window, enter the deposit number, description, bank code, and deposit date. For more information, see Cash Receipts Deposit - Fields.

  3. Do one of the following, depending on the payment type.

    If you are applying a cash payment:

  1. Type the amount of the check and click Accept.

  2. In Cash Receipts Entry, enter the customer number or, in the Invoice No. field, type the debit memo number. In the Deposit Type field, select Cash and enter the check number. For more information, see Cash Receipts Entry - Fields.

If you are applying a credit card payment:

  1. In the Credit Card Deposit Amount field, type the amount and click Accept.

  2. In Cash Receipts Entry, enter the customer number or type the debit memo number. In the Deposit Type field, select Credit Card, and enter the credit card entry number for this receipt.

If you are applying an ACH payment:

  1. In the ACH Deposit Amount field, type the amount and click Accept.

  2. In Cash Receipts Entry, enter the customer number and select ACH in the Deposit Type field. Enter the ACH payment entry number for this receipt.

  1. Click the Lines tab.

  2. In the Invoice No. field, enter the debit memo number. This number must have a suffix of –DM, and it must exist in the Open Invoice file. If you previously entered the debit memo number, and it has a balance greater than zero, the debit memo number is automatically populated.

The amount posted will be the same as the debit memo amount displayed. This amount can be changed as you would do with an invoice. You can distribute all, or any portion of the total amount received toward the debit memo, and it will be reduced accordingly.

  1. Enter any other appropriate fields and click OK. The debit memo balance is reflected in the Invoice Balance field.

  2. If you entered a credit card or ACH payment, click the Payment tab, and enter the customer's payment information.

  3. Click Accept.

  4. Click the Print button, and then print and update the Cash Receipts Journal and Daily Transaction Register.

The payment receipt is applied to the debit memo. For more information, see Miscellaneous Cash Receipts.