Smart Apply suggests how to apply an approved credit memo to open invoices from the same vendor. The suggested allocation appears in a pop-up, and nothing is applied until you select Confirm. Accept the suggestion as is, adjust the selection, or clear everything and choose invoices manually.
Smart Apply suggests applying the credit to eligible open invoices for the same vendor. It prioritizes invoices in the same legal entity as the credit memo, then invoices whose number matches the credit memo number, followed by the earliest due date. Each invoice receives as much credit as its remaining balance allows, and any credit left continues to the next eligible invoice, including the vendor’s invoices in other legal entities. If the credit runs out, the last invoice stays partially open. If credit remains after all eligible invoices are paid, it stays on the credit memo.
Smart Apply is only available on credit memos in Approved status. Use the Approve row action first if the credit memo is still unapproved.
Permissions
Applying a credit memo with Smart Apply requires the following permissions:
Edit AP Credit Memos or Edit Operations Credit Memos — required to open Smart Apply and apply the credit
View AP Invoices — required to view eligible invoices in the Smart apply pop-up
Navigate to Smart Apply
Go to Accounting → Accounts Payable →AP Center.
In the Workflows section, select the Credit memo tab.
On an approved credit memo row, click the Smart apply icon
.
The Smart apply pop-up opens.
Smart apply pop-up
The pop-up opens centered on the screen and is titled Smart apply. The header displays the vendor name, credit memo number, and total unapplied credit available.
Fields/Buttons | Description | |
|---|---|---|
1 | Search invoices | Searches invoice numbers and locations in the list. If nothing matches, the list shows No open invoices for this vendor. |
2 | Filter | Opens a Filter by panel where you select a column, an operator, and a value. The amount operators are is, is not, greater than, greater than or is, less than, and less than or is. Select + Filter to add another filter. Select Clear all in the filter panel to remove all filters. |
3 | ⋮ (three-dot menu) | Additional display options. |
4 | Reset to suggested | Restores the system’s original selection. Removes any invoices you added and re-checks only the system-suggested ones. |
5 | Clear all | Unchecks all invoices and sets every Apply amount to $0.00. Confirm becomes disabled. |
6 | Total to apply | The total credit being applied across all selected invoices. Updates as you change selections or amounts. |
7 | Remaining credit | The credit balance that remains unapplied after confirming. Updates as you change selections or amounts. |
8 | Cancel | Closes the pop-up without applying anything. The X in the pop-up header and the Esc key do the same. |
9 | Confirm | Applies the credit to the selected invoices. |
Invoice list
The invoice list prioritizes invoices in the same legal entity as the credit memo, then invoices whose number matches the credit memo number, followed by the earliest due date.
Column | Description |
|---|---|
Checkbox | Selects the invoice. Checking a row leaves its Apply amount at $0.00, so enter an amount to apply credit to that invoice. Entering an amount checks the row automatically. |
Due date | The invoice due date. |
Invoice # | The invoice number. Click to open the invoice record. |
Location | The location associated with the invoice. |
Invoice amount | The total amount of the invoice. |
Amt remaining | The invoice balance after that row’s Apply amount. It updates as you type. For example, an invoice with a $130.00 balance shows $130.00 with nothing applied, $80.00 with $50.00 applied, and $100.00 with $30.00 applied. |
Apply date | The date the credit is applied. This is the later of the credit memo date and the invoice date. |
Apply amount | The amount of the credit to apply to this invoice. Click to enter a different amount. |
If the vendor has no eligible invoices, the pop-up shows No open invoices for this vendor and Confirm stays disabled.
Apply a Credit Memo Using Smart Apply
Review the pre-selected invoices.
The system first selects invoices in the same legal entity as the credit memo, then invoices whose number matches the credit memo number, followed by the earliest due date until the credit is used up or all eligible invoices are covered.To adjust the selection, uncheck any pre-selected invoices you want to exclude. To include another invoice, check it and enter an Apply amount, or enter an amount directly, which checks the row automatically.
To change the credit amount for a specific invoice, click the Apply amount field on that row and enter a different value.
To restore the system’s original selection at any time, click Reset to suggested.
To start over with no invoices selected, click Clear all. Click Reset to suggested to re-apply the system’s picks.
When the selection and amounts look correct, click Confirm.
The confirmation banner appears in the bottom left side of the screen when the credit is successfully applied.
Outcomes
The result depends on how the credit amount compares to the total of selected invoices:
Scenario | Result |
|---|---|
Credit is less than selected invoice totals | The system reduces invoices in the same order that invoices are selected:
The last partially-covered invoice remains open for the difference. The credit fully applies and leaves the grid. |
Credit equals selected invoice totals | The system clears all selected invoices. The credit fully applies and leaves the grid. |
Credit is greater than selected invoice totals | The system clears all selected invoices. The remaining unapplied credit stays on the credit memo, which remains on the grid. |