Applying credit memos
A vendor might issue you a credit memo to reduce your account balance. For example, you might have returned some merchandise, resulting in an overpaid account. Credit memos are also generated by the Accounts Payable application when you specify and release a prepayment. You apply credit memos to the released invoices with which they are associated.
You will need to specify and release any invoices associated with the prepayment prior applying the credit memo.
Apply a credit memo