How to apply a credit note in MYOB

Make sure the credit note is already saved as a sales return. If it isn't, create the return first and come back to this task.

Then check that the customer has an unpaid invoice to take the credit. The apply page lists only that customer's unpaid invoices, so a customer who owes nothing will have none to choose from. In that case you can keep the credit for a future invoice, or refund it instead.

If the credit is meant to cover more than one invoice, work out how much goes against each one before you begin. Any amount you don't apply stays on the credit.

1. From the Sales menu, choose Sales returns and credits. The page lists every return still waiting to be credited or refunded.
2. Choose the Customer the credit belongs to.
3. Click Apply next to the return you want to use. The Apply customer credit to sale page opens, showing the return and the customer's unpaid invoices, with the return's value in the Credit field.
4. In the Amount applied field, enter how much of the credit goes against each invoice. You can use one invoice or several, and an invoice can be left with some still to pay.
5. Click Record.
6. Send the invoices you applied the credit to back to the customer, so they can acknowledge the change.

Each invoice you chose now has less owing, by the amount you entered, and the customer owes you that much less overall. The credit is used up, or reduced to whatever balance you left on it.

To undo an application, open the invoice it went against (Sales menu > Invoices) and find the Activity history at the bottom. Click the reference number of the applied credit, click Delete, then confirm with Delete. The credit is available again, ready to go against the right invoice or to be refunded.

If you use AccountRight on the desktop, credits are applied from the Sales Register in the Sales command centre. On the Returns & Credits tab, select the credit and click Apply to Sale, then type amounts in the Amount Applied column of the Settle Returns & Credits window. The amounts in that column must add up to the Credit Amount before you click Record. Part of a credit can also go against an unpaid finance charge, in the Finance Charge field.

No outstanding invoices showing on the desktop? If you use categories, give the credit the same category as the invoice so the invoice appears. The preference Apply Customer Payments Automatically to Oldest Invoice First, on the Sales tab of the Preferences window, fills in amounts against the oldest invoices for you, and you can still change them. Close and reopen any open windows after turning it on.