Applying a credit card payment to a posted invoice

Applying a credit card payment to a posted invoice

Postby Customer Service » January 24th, 2012, 8:39 pm

Applying a credit card payment to a posted invoice

1. Run the Sales/Invoices command to create a new invoice batch.
2. Enter a Credit Memo (Transaction Type = Credit Memo/Return).
3. Do NOT specify an invoice number in the Apply to field.
4. Enter a single Invoice detail Description that says something like “Payment tendered”, with a zero amount.
5. In the Payment Tendered part of the screen enter the credit card used and the amount of the payment as a positive number. This will result in a negative balance for the credit memo.
6. In the Statement Description field you might want to say “Credit card payment” or something other than Credit Memo/Return.

When this entry is saved and posted, it will properly reduce the customer's balance by the amount of the payment, and the credit card payment will be properly recorded in the credit card register report. The credit card G/L account will be debited and the Receivables account will be credited for the amount of the payment. The only thing missing is that the CM will not be “applied” to the invoice. The Customer Activity report will show both transactions as outstanding. These two transactions can be tied together using the procedure documented here if it is important to do so, otherwise you can ignore this fact.

If the customer overpaid and you need to issue a refund for some of the payment, you will need to create another Credit Memo following the steps above but this time entering the amount of the refund in the Payment Tendered section as a negative amount.

After posting the credit memo with the credit card payment, the payment amount is in your G/L as a debit in the credit card account, the same as if the credit card payment had originally been applied to the invoice at posting time. You still have to “move” that amount from the credit card account to your bank account using the Bank Account/Deposits program, as described in the Help topic “Depositing Credit Card Receipts.” When you do this deposit step, you don't need to do a separate receipt for each credit card payment. A single receipt for the daily total should be sufficient.
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