Here is a reasonably large remittance advice which includes a credit that the customer has processed:

In the above remittance, the credit is shown at the bottom and is highlighted with the numbers 1-2-3

(1) Our Invoice

(2) Their Credit

(3) Their allocation of the Credit. 

Item 3 is not a necessary item to display because items (1) and (2) automatically mathematically cancel each other out so we do not need to process anything for item (3)

STEP 1: MAKE SURE THE CREDIT NOTE IS ENTERED

Make sure the credit is listed in your current transactions.

In this case you would have created a credit note in the first place and so it is likely already present

This transaction could have also been a store 'buyer created invoice' where they enforced a credit.

If so enter it as a 'Journal Entry' reducing the customer's account balance.

If there are more credits, make sure these are also entered.

STEP 2: PROCESS THE CREDIT NOTE FIRST

It is probably easier to clear away the small amounts first. You don't have to but we prefer to deal with the small transactions first as it makes the rest of the process clearer.

1: Go to the 'Tag Receipts'

2: Find the credit note by either using the scroll bar or 'Find Invoice' button

3: Select the Credit

4: Use the 'Find Invoice' button to find the invoice to allocate the credit note to.

When you select the credit first, this automatically primes the 'Find Invoice' function so that if the invoice you find matches the credit, the system will automatically offer to post the allocation.

STEP 3: PROCESS THE PAYMENT/RECEIPT

We call it a payment because we are thinking from the customer's perspective. Technically it is a receipt but if you were talking to the customer they would understand it better as a Payment. "Thank you for your payment' works whereas "Thank you for your receipt' does not.

1. If the receipt has not been imported you will need to add the payment details.

The amount will be the EXACT AMOUNT they paid:

2. Go to the 'Tag Receipts' section and as before, locate and tag the credit first

3. Use the 'Find Invoice' function to now work through the allocation to invoices.

Note: If they are only paying part of an invoice:

1. Enter the invoice number once and the full amount of the invoice will be allocated

2. Enter the invoice number again and you will be asked to edit the amount

4. Once the credit value is used up, you will automatically be prompted to process the transaction.

ALLOCATION COMPLETE