How to apply an old credit?

[srkelsey]

A customer bought $500 of goods in June, 08. A week later the customer brought back $300 of the goods for credit. Even though I sent the customer a credit memo for $300 to apply to the invoice when making payment in July, 08, the customer paid $500 rather than $200. I reversed the $300 credit memo I had previous done and applied the $500 to the invoice and let the situation set. I could have left the $300 credit intact, applied $200 of the check to wipe out the invoice and put the remaining $300 into Misc. Income temporarily before sending the $300 back to the customer in the form of a check. This customer normally buys every couple of months, so I did nothing and forgot about it.

In Nov., 08, the same customer bought $900 of goods. In Jan., 09, the next year, the customer paid $600 and applied the $300 credit memo from the previous situation to zero out the Nov. 08 invoice.

While my customer and I are square with each other, I am not sure how to make the Jan., 09 payment/credit entries. When you try to enter a credit, the screen rightfully wants you to enter the goods that are being returned. I already took care of that when I did my inventory adjustments at the end of 08 after I did my physical inventory.

What are my options here?

Thanks.

[rick Prindivill]

You need to take the Credit in 2009 since you over stated your sales in 2008 bythe amount of the credit.