I have read through some of the related threads on the forum, but I am still unsure what to do in my case. Below is an outline of my problem.
I deal with some Big Companies that have several branches. BigCompany_BranchA, BigCompany_BranchB, BigCompany_BranchC etc. I have created accounts for each branch and BigCompany_Accounts_Payable pays all of the invoices for each branch.
Some while ago I sold some products to BigCompany_BranchA and they were subsequently paid for. For some reason BigCompany_BranchA stopped selling my products and wanted to return the surplus inventory they had on hand. As I do good business with BigCompany, this did not seem to be an issue for me, so I did a return and issued a credit note to BigCompany_BranchA. There account is now in credit to this amount.
BigCompany_Accounts_Payable have now paid other invoices from other branches and deducted the credit note value of BigCompany_BranchA from their remittance.
How can I allocate the value of the credit note across invoices from some of the other branches and also reduce the balance of BigCompany_BranchA account to zero ?
I am not from an accounting background so would greatly appreciate verbose and simple answers if possible.