AR Pre-payment

SUGGESTED

Hi.

Okay.....

A prepayment was applied to  the wromg customer in Sage and has been reconciled since December 2021. I was told to issue a debit memo for the amount that was misapplied. My big question is.... is it possible to apply prepayments to a debit memo?

Thanks!

Becky

  • 0
    SUGGESTED

    Try a zero $ cash receipt deposit.  Negative entry for the bad prepayment, then positive entry for the good one.  There should be no activity to the cash account, and move the $ to the correct customer.

    Or...

    If you want something to send to the "wrong" customer as an explanation for the outstanding balance, post a DM there (line data to a clearing account), then do a Cash Receipts entry to the correct customer with a GL distribution line using the same clearing account as the DM (moving the $ to the correct customer through the clearing account).  To move the DM balance back to the original invoice (for the wrong customer), use a zero $ cash receipt.

  • 0 in reply to Kevin M

    Thank you Kevin for your quick reply. I'll run the options by the bookkeeper.

  • 0 in reply to Beckway

    Try both in a test company to make sure the results look the way you'd like.  I didn't test myself, but these transactions "should" be possible.