Applying a credit memo to an open invoice

After recording a credit memo for a customer, the credit will immediately be applied to the open balance for that customer. Let’s assume that Astro Jetson has sent a payment in for invoice #1005. Navigate to the Receive Payment window, select Astro Jetson from the customer dropdown and the following screen displays:

Figure 7.19: Astro Jetson invoice

As you can see in Figure 7.19, the original invoice amount was $2,000.00, and now that the credit has been recorded the open balance has been reduced by the $250 credit amount (shown in Figure 7.18) to $1,750.00.