Applying credit note to invoice

ERPNext
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#1

Say,

  • Customer ‘X’ has returned items worth $1000 against Sale Invoice No. INV-001. We have created a Credit Note against the invoice.
  • Now the customer has again purchased few items from us worth $1800. We have created a new sale invoice INV-002.
  • But the customer has paid us $800 only and asked to apply the $1000 credit note to that invoice so that the outstanding amount becomes zero.

How to apply the credit note amount to a sale invoice? I didn’t find any direct way to do that.

Please help!

#2
  1. First, create a Credit Note against an Invoice
  2. Then create a Payment Entry for the return amount
  3. Use payment reconciliation to knock off Payment against the original Sales Invoice