Hello Hasan,

I beleive I fully understand the Credit/Debit matching to a Standard Invoice process.
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However, I noticed that the system ALLOWS you to match a Credit Memo to many Standard Invoices assuming there are 2 for the same Supplier-Site.
Each of these Standard Invoices could have different LINES & DISTRNS.
Std Inv #1 could have 2 lines and 2 gl accts.
Std Inv #2 could have 4 lines and 4 distrns.
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Seems like I can match my Credit Memot to both Std Invoices and distribute the amount of the Credit Memo to ALL 6 lines.
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Why is this possible ?
Is this done normally in the real world ?
What's the purpose of allowing this to happen ?
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Thank-you
Charlie

You can match credit/debit memo to existing invoices.
The purpose is to have AP automatically copy the accounting information.
Invoice distributions will be automaticlly created for the credit/debit memo.

A credit memo could be matched to "multiple invoices".
This could be done at different levels of detail.

Lets say you have receive a credit for items as a result of you returning items to suppliers.
A credit memo could be entered.
Then you can match it to the original "invoices" you entered.
This ensures the credit memo distributes the credit to the same accounts that were used originally to book expenses.

Also note that When matching a credit or debit memo to an invoice, this links the two transactions for informational purposes.
This does not close the invoice or memos, both of which will continue to appear on the aging until they are selected for payment.

Hello Hasan,

I think I might not have explained myself
I have 2 STD Invoices
STD Invoice #1 $100 Distrn relates to Rent Exp
STD Invoice #2 $200 Distrn relates to Office Sup Exp
I now create a CREDIT MEMO for -$50, that I will match to BOTH of these STD Invoices (-$25 EACH)
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Now I have a CREDIT MEMO for -$50
with 2 Distrns...
$-25 for Rent Exp & $-25 for Office Supplies Exp
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I now apply the CREDIT MEMO for $-50 to STD Invoice 1
I DO NOT TOUCH STD Invoice 2
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STD Invoice 1 has only 1 Distrn (Rent Exp)
CREDIT MEMO has 2 Distrn (Rent Exp & Office Supplies)
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STD Invoice = $100
CREDIT MEMO = -$50
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There is a mismatch in the Distributions...
This is possible... there are NO restrictions when matching CREDIT MEMO to 1 or more STD Invoices.
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Does this happen in real life ?
Wouldn't this cause Accounting problems ?
Why does the system allow this to happen ?
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I hope I explained myself better this time :)
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Thank-you
Charlie

I think I did answer your question in my previous reply:

"Also note that When matching a credit or debit memo to an invoice, this links the two transactions for informational purposes.
This does not close the invoice or memos, both of which will continue to appear on the aging until they are selected for payment."

You have two invoices $100 and $200 and a credit memo $25. For all practical purposes you are all set to process the three transactions. You do not have to marry the credit memo to the invoice as such. You can create payment and include all three documents in there. The total check amount would be $100+$200-$25.
If you are attaching a credit memo to the invoice then you are doing that for information purpose only. (There are no restrictions at this point)