Need to apply an AP Credit note to an AP invoice
It is not always intuitive when looking at the Pay Bills screen, how to apply credits to invoices. Go to Accounts Payables / Select Bills to Pay, enter the necessary criteria, and click on View. This brings you to the Pay Bills screen where the bills to be paid are listed and the amount of credits to be applied (total of all credits) is shown in the Credit available column.
Step 1 is to click on 'split' beside the Amt to pay column. This brings you to the Split Payment By Line Items screen, where the individual line items from the invoice are shown on the top, and the credit lines are shown on the bottom of the page.
Step 2 & 3 - click anywhere on line one of the invoice to ensure that any credit applied will be applied to that line item.
Step 4, 5 & 6 - enter the amount of line 1 here (or the amount of the credit you want to apply to line 1) and then click Apply. The credit amount is now transferred to the Credits Applied field on line 1 of the invoice.
Repeat steps 2 through 6 for the second line. Notice that the Amount Available on the credit reduces each time an amount is applied to a line item. When the amount available on the credit is 0.00 (or when you have applied all the credit you want to apply) click on Done.
This returns you to the Pay Bills screen. There will be an amount in the Credit available field (the amount that was applied in the split screen) and you need to enter that amount in the Credit to apply field. Now, you can Save the entry to record the application of the credits to the invoice, or you can also pay the balance of the invoice (if there is one).