AR Pre-payment

Question

Hi. 
 
 Okay..... 
 A prepayment was applied to the wromg customer in Sage and has been reconciled since December 2021. I was told to issue a debit memo for the amount that was misapplied. My big question is.... is it possible to apply prepayments to a debit memo? 
 Thanks! 
 Becky

Kevin M · Answer

Try a zero $ cash receipt deposit. Negative entry for the bad prepayment, then positive entry for the good one. There should be no activity to the cash account, and move the $ to the correct customer. 
 Or... 
 If you want something to send to the "wrong" customer as an explanation for the outstanding balance, post a DM there (line data to a clearing account), then do a Cash Receipts entry to the correct customer with a GL distribution line using the same clearing account as the DM (moving the $ to the correct customer through the clearing account). To move the DM balance back to the original invoice (for the wrong customer), use a zero $ cash receipt.

Sage 100

AR Pre-payment

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