I have a customer that sold us some parts…so now I have a Payable for them. since they are our customer, we also have a credit memo for them.
We want to apply the CM to the AP invoice…
What would be the best practice to offset the AP with the CM.
We have a similar scenario, but slightly different. Sometimes we have a customer we need to issue a refund check to for over payment. In that situation we’ll write off the AR credit memo of unapplied cash to our suspense account, enter the AP invoice and expense it to the suspense account and then issue a check to the customer.
We do the same thing but, instead of a suspense account when adjusting the credit memo, we use customer refund account.
You can do a miscellaneous payment - they do not have to be in the Supplier Master and then use reduce customer refund account at payment.
It is easy to reconcile the account.
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