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.
