When you place a quote and a deposit is required, the customer’s open credit notes can
pay all or part of it — for example the note created when an earlier order was
reverted to a quote.

When the prompt appears

On Place Order, if a deposit is required and the customer has credit notes with a
balance, you are asked: Customer has X in credit notes. Apply them toward the Y deposit?
Answer No and the usual deposit steps run, unchanged. If the customer has no open notes
you are not asked.

The Apply Credit Notes dialog

Answer Yes to open the dialog. It shows the customer, the document and the
standard deposit, then a list of the open notes with their number, date, balance, the
amount that would be applied and what would remain.

• Notes are used oldest first, and each note is used up completely before the next
  one is touched.
• The totals show the total applied and the remaining deposit.
• Press Apply to use the notes, or Cancel to go back to the normal deposit
  steps.

The list is a preview. When you press Apply the server works out the amounts again from the
current note balances, and the dialog then shows the final figures it used. If a note changed
in the meantime, trust the figures shown after Apply.

If the notes do not cover the deposit

After Apply, if something is still owed, the usual deposit dialog opens for the
remainder: its default amount is the remainder, and its minimum is lowered by the credit
already applied (never below zero). Take the rest by cash, card or cheque as normal, and Place
Order continues.

What the deposit looks like

Each note used appears in the order’s deposit list as a deposit whose reference is the
credit note number. No deposit invoice is created and nothing is sent to accounting for it. On
invoicing it is deducted like any other deposit, once.

Removing a credit-note deposit

If you delete such a deposit from the deposit list, the money goes back onto the credit
note and the customer’s credit is restored; it is not paid out in cash.