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Hi Mitch - I've done that in using current set up. Still doesn't work. The apply credits check box still isn't working under this sequence. See below.
I choose auto apply:
I fill in first amount of credit:
I fill in second amount for balance on second invoice and then hit Save:
And ..... Credit is not applied and same old payment window shows up:
I still can't get credit eliminated and paid invoices off statement or payment screen.