Sometimes a manufacturer or vendor tells you they'll issue a credit toward your next invoice, but circumstances change — maybe you won't be doing further business with them, or they end up sending a check instead of applying a credit. Normally, this would mean canceling out the credit and finding another way to book that revenue.
Instead, if the credit has already been entered into the system under Accounts Payable, you can send it directly to Accounts Receivable without having to cancel and re-book it.
1. Locate Eligible Credits
Go to your list of credits.
Look for the scale icon next to a credit.
The scale icon only appears for vendors that have an Accounts Receivable account already set up. For example, a vendor like GE Appliances might show this option, while another vendor, like Craftmaster, may not.
2. Send the Credit to Accounts Receivable
Click the scale icon next to the eligible credit.
Select the location.
The system will automatically know the account and customer, since that information is tied to why the scale icon appears in the first place.
Confirm the amount.
Click Process Payment.
This moves the credit out of Accounts Payable and into Accounts Receivable.
3. Apply the Payment in Accounts Receivable
Go to Accounts Receivable.
Find the invoice or credit that was just sent over — it will now appear as an invoice in AR.
Take payment against this new AR invoice as you normally would.
Why This Is Useful
This process is especially valuable when you're not sure how a manufacturer will ultimately reimburse a credit — whether as an actual payment or as a credit memo. It gives you the flexibility to:
Book the credit initially in Accounts Payable.
Move it to Accounts Receivable later if circumstances change.
Moving Credits in the Opposite Direction
There is also an inverse option available: moving a credit from Accounts Receivable to Accounts Payable. Depending on where a credit originates, you can move it from AP to AR or from AR to AP as needed.
Summary
Credits with a scale icon next to them can be sent from Accounts Payable to Accounts Receivable.
This option only appears for vendors with an AR account already set up.
Clicking the scale icon and processing the payment moves the credit into AR, where it appears as an invoice ready for payment.
This tool provides flexibility when you're uncertain how a vendor will ultimately reimburse a credit.