Accept a Payment or Credit Memo from a Customer to be Applied on an Invoice Issued to a Different Customer

Solution:
 

1. Navigate to Transactions > Financial > Make Journal Entries and enter the journal entries as follows:

• Debit Bank Account
• Credit AR account; Enter Customer A on the Name field.

 2. Create another journal entry:

• Debit AR account; Enter Customer B on the Name field.
• Credit Bank Account

 
3. Navigate to Transactions > Customers > Accept Customer Payments

1.    Enter Customer A

2.    Mark the Apply checkbox for both Journal Entry and Invoice

3.    (Do the same steps for Customer B)

 
Note: The balances will also show correctly on the AR Aging report.