To apply a credit memo to an incoming bill for a Supplier go to the Bills screen and double click on the blue credit memo or pre-payment.

The payments screen will open with the pre-payment information already populated in the fields.

Choose from the drop down menu the bill/s the Deposit/Pre-Payment will apply to and Click the Save/Print options to apply the Deposit/Pre-Payment to an Invoice.

Use the New Allocation option to apply a credit memo/pre-payment to a Supplier Bill.

The results will appear just like an Invoice with a payment applied. Any additional balance will appear at the bottom of the bills screen and in the P/D Balance column.