Transfer to Another Customer an Applied Credit Memo

Scenario

We need to transfer an applied Credit Memo from one Customer to another.

 

Solution

1. Unapply the Credit Memo from the Invoice

1. Open the Credit Memo that was applied to an Invoice

2. Click Edit

3. Click OK on the pop-up warning that will appear

4. Under the Items tab > Apply sub-tab, remove the check mark from the Invoice

5. Click Save

2. If the Accounting Period is already Closed, please do additional steps before doing the steps above:

1. Using an Administrator role, navigate to Setup > Accounting > Manage Account Period
2. Click the link for the specific period
3.  In the Edit Base Period page, mark the Allow Non-Gl Changes checkbox
4. Click Save
5. Transfer the Credit Memo to another Customer

3.Navigate to Transactions > Financial > Make Journal Entries

1. Debit: Accounts Receivable account
2. Enter the Amount
3. Name: Enter the customer indicated on the Credit Memo
4. Note: This debit will be used to close the existing Credit Memo.
5. Credit: Accounts Receivable account
6. Enter the same Amount
7. Name: Enter the customer we will transfer the credit
8. Note: This will create a credit that we can use to apply to the customer’s open Invoice.
9. Click Save
10. Apply the Journal Entry

4.Navigate to Transactions > Customers > Accept Customer Payments

1. Choose the Customer that has the original Credit Memo. Notice that the journal is available in the Apply field.
2. We can apply the existing Credit Memo to the Journal to close the Credit Memo
3. Click Save

Note: The credit portion of the journal entry is now available for the other Customer which we can apply to their open Invoice/s.