Once a credit memo is added to a vendor on the Manage Invoice page, the next step is to apply it to the open invoice.
Step 1: Open the Credit Memo
- Go to Accounting > AP > Pay Invoice.
- Find the vendor that has a credit memo available.
- In the Credit Amount column, click the CM hyperlink to open the Credit Memo window.

Step 2: Apply the Credit Memo Amount
- In the Payment field, enter the amount of the credit memo you want to apply to the open invoice.
- Click Save.

Tips:
- If the credit memo amount is higher than the invoice amount, the remaining balance will stay available for future invoices.
- After saving, check the Check Amount to make sure the credit was applied correctly.
- If it doesn’t look correct, click the Credit Amount link again and adjust it as needed.

Step 3: Process the Payment
- Select the invoice you want to pay using the credit memo.
- Click Process Payment from the Page Action button.
Once the invoice is paid, generate a check—unless the payment was processed through Auto-Draft or Manual Check.
Notes
- Credit memos appear as positive amounts on the Pay Invoice page.
- The system automatically applies the credit memo to reduce the total invoice balance.
Summary
To apply a credit memo to a vendor invoice:
- Open the Credit Memo from the Pay Invoice page.
- Enter and save the amount you want to apply.
- Process the payment and generate a check if needed.