Debit memos and underpayments

To show that an invoice was paid in full when the amount received is less than the expected amount, you can write off the amount of an underpayment made by a customer, or you can create a debit memo for the amount. For example, if a customer has taken a credit before the credit was issued, or the credit has been applied to another invoice, the invoice can be shown as paid in full, and the difference posted to the customer’s account as a debit memo/invoice.

To create a debit memo for an underpayment, you can fully apply payment to the invoice and then create the debit memo for the amount of the negative proof. Or, you can create the debit memo first and then fully apply the payment to the invoice.

To create a debit memo first, calculate the difference between the amount of the invoice and the amount of the payment you received to determine the amount of the debit memo. After you have create the debit memo in Customer Transaction Entry, the proof should be the amount of the invoice you are going to pay in full. Apply the payment to the chosen invoice to show the invoice is paid in full and create a new invoice for the amount of the debit memo.

When you create a debit memo for an underpayment of an invoice, an additional scheduled payment is created on the invoice for the amount of the debit memo.