By umair on December 25, 2019
Beginner
Question: We have customers that return items after the invoice was paid. So, as usual, we create a credit note. But sometimes there is no other open invoices where allocate the credit note to. So, in these cases, we will need to pay customers back. How can I register this kind of transactions that we don't have negative credit on list invoices.

Answer

You should be able to manage this specific scenario by following steps shared below.

  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 original Sales Invoice (and not the Credit Note itself).


Note: In case of a Purchase cycle, where you create a debit note in the system for similar scenario, the steps would be as follows:

  1. First create a Debit Note in the system against the Purchase invoice
  2. Then create a Payment entry for the return amout
  3. Use payment reconciliation to knock-off Payment against original Purchase Invoice (and not the Debit Note itself).


More articles on Accounting



More articles on Accounting
Comments

No comments yet. Start a new discussion.

Add Comment