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How to Match a Payment to an Invoice and a Credit Note

Learn how to apply a payment and a credit note together to fully reconcile an invoice in Kolleno.

Kolleno Support avatar
Written by Kolleno Support
Updated yesterday

When a customer makes a payment that does not fully cover the invoice amount, you can apply a credit note alongside the payment. This ensures the invoice is fully reconciled in your ERP (e.g., NetSuite) without leaving an outstanding balance.

Important information to know before starting:

  • Always check the Difference field before applying additional transactions.

  • Once reconciled, both the payment and credit note will appear in your ERP history as applied records.

For a step-by-step demonstration, watch our short video guide:

Step 1 – Locate the Invoice

  1. Navigate to Invoices.

  2. Search for the customer (e.g., Karimun Dudley) and open the invoice (e.g., total amount $1,300.07).

  3. Confirm the payment received is less than the invoice balance (e.g., $893.06 payment vs. $1,300.07 invoice).

Step 2 – Check the Difference

  1. Scroll down to the Difference field.

    • This shows the gap between the unmatched invoice amount and the payment received.

    • Example: Invoice total = $1,300.07 - Payment received = $893.06 → Difference = $407.01

  2. This indicates you need to apply another transaction, potentially such as a credit note, to close the balance.

Step 3 – Select the Credit Note

  1. Locate available credit notes for the same customer.

  2. Select the appropriate credit note (e.g., $407.01).

  3. Once selected, it appears in the Selected Transactions view.

Step 4 – Verify Totals

  1. Confirm the Amount to Apply equals the full invoice amount.

  2. Check that:

    • Payment received + Credit Note amount = Invoice Total.

    • The difference is now zero.

Step 5 – Match and Reconcile

  1. Click Match to confirm the allocation.

    • Example:

      • Customer payment of $893.06 will be deposited.

      • Credit note of $407.01 will be applied.

      • Total $1,300.07 applied to the invoice.

  2. Push the transaction to NetSuite via Review and Reconcile.

Step 6 – Verify in ERP

  1. Refresh the invoice in NetSuite.

  2. Confirm the invoice balance is now zero and shows Paid in Full.

  3. Check the history:

    • The payment record is applied.

    • The credit note is fully applied.

  4. Open the credit memo record to confirm its status changed to Fully Applied.

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