Allocating Credit Note and Payment
By umair on December 25, 2019Beginner
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.
You should be able to manage this specific scenario by following steps shared below.
- First create a Credit Note against an Invoice
- Then create a Payment Entry for the return amount
- 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:
- First create a Debit Note in the system against the Purchase invoice
- Then create a Payment entry for the return amout
- Use payment reconciliation to knock-off Payment against original Purchase Invoice (and not the Debit Note itself).
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