Partly in order to accommodate supplier prepayments, you can apply any unapplied credits for specified suppliers directly on purchase invoices. Doing so ensures that supplier balances and outstanding amounts on purchase invoices are correct.
You can apply credits any time there are unapplied credits (regular unapplied credits or prepaid ones) on a specified supplier’s account; this includes both purchase order items specified to be prepaid as well as regular items.
If a purchase invoice contains prepaid purchase order items, a reminder message appears on the Taxes and Credits tab; however, you are not required to pay for them using unapplied or prepayment credits.
Note
You can also apply and unapply supplier credits from the Supplier Accounts window.
To apply credit on a purchase invoice
Navigate to Accounts Payable > Purchase Invoices, or click the Purch. Invoice toolbar button.
The Purchase Invoices window opens and all purchase invoices created today are listed.
Click Add to create a new purchase invoice.
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Select an existing purchase invoice that you want to apply credits to and click Edit.
The Add Purchase Invoice or Edit Purchase Invoice window opens.
Click the Taxes and Credits tab.
If the purchase invoice contains purchase order items specified to be prepaid, the amount (Linked to Prepaid POs) appears in the Available Credits section.
Tips
The Credits table can be sorted and filtered.
To view a Payment Document report for a credit item, select the credit item from the list and click View Item.
Check Reverse Credits to apply credits from the PI back to a payment or prepayment. Reverse Credits can be applied only to credit purchase invoices.
(this is a transfer of credits from the purchase invoice to the payment using the same negative credits logic as when a cheque includes credit PIs)
In the Apply column, check the boxes of the credit items that you want to apply to this purchase invoice.
The Amount box displays the total selected credits available to apply to the purchase invoice.
optional In the Amount box, enter the dollar value of credits that you want to apply.
For example: if the purchase amount is $75,000 and you have a $50,000 unapplied credit, but you want to apply only $30,000 of it, then enter $30,00 which will leave the remaining $20,000 unapplied. Or you may want to apply partial amounts of more than one credit.
Click Refresh List to clear the selected credit items.
Click Save.