Awesome detail. Now I know who to contact for accounting questions. 😀 On Oct 28, 2017 2:00 AM, "Pierre Smits" <pierre.sm...@gmail.com> wrote:
> Hi James, > > The simple answer is NOT. On invoice level. And that is regardless of > whether you're talking about a Sales or Purchase. A sales Credit Note (or > Credit Invoice) is not a payment of the Sales Invoice, and - equally so - a > Purchase Credit Note is not a payment of a Purchase Invoice. For > convenience purposes I will explain more below using only the sales domain. > > Both the Invoice and the Credit Note stem from the Order. When the Invoice > has been generated and encompasses all elements regarding the Order, the > obligation of the customer to pay the (agreed) amount due has been > established in the debtors sub ledger and in the general ledger. When (due > to whatever reason) a Credit Note is issued, the total obligation is > reduced. The reference to the order (and other documents as delivery notes, > RMA's, etc) help to identify where it came from. > > So the Credit Note reduces the outstanding debt. When subsequently a > payment from the debtor comes in, all the appropriate Invoices and Credit > Notes should have payments (positive for Invoice, negative for credit > note).against them. If in anyway the payment is unclear Invoices and Credit > Notes should not be should not be marked against that payment. More > investigation is required!. > > Suppose the following: > Order = USD 1.000,00, and goods have been delivered > Invoice = USD 1.000,00. > RMA is granted for 1 time on the order, valued at USD 100,00 > Credit Note is issued for USD 100,00 > At this moment the outstanding debt (in Accounts Receivable) is 900,00 for > the order, but the total position of the debtor can also be higher or > lower. > > Subsequently a payment of UDS 910,00 arrives, but the description is > unclear. Then you can't tell which Invoices and Credit Notes are > applicable. If you take the first one(s) that may seem appropriate, you're > creating a confusion that will go from bad to worse. So you need more > information and keep chasing the debtor. > > And when everything regarding the received payment is clear (accepted by > the accounting department) an accounting transaction must be created to > ensure that everything is correct: > > In the sub ledger the Invoice for USD 1.000,00 will be marked as paid > Also the Credit Note for USD 100,00 will be marked as paid > And an undesignated payment of USD 10,00 will also be registered. > > I trust this helps. > > Best regards, > > > > > > Pierre Smits > > ORRTIZ.COM <http://www.orrtiz.com> > OFBiz based solutions & services > > OFBiz Extensions Marketplace > http://oem.ofbizci.net/oci-2/ > > On Wed, Oct 25, 2017 at 3:49 PM, <ja...@productive1.com> wrote: > > > I have been struggling with the Credit Memo and Vendor Credit Memo > > process for a while and I think this needs a real hard look. Can > > someone tell me the proper way to apply a Credit Memo generated from a > > return to the Original Invoice from the sales order. > > > > Here is the Example > > > > Customer buys GZ1000 for a $1000 and is invoiced for $1000 > > He returns GZ1000 and is given a credit for $1000 > > > > How is that credit applied to the original invoice so it shows in > > accounting that the customer no longer owes $1000? > > > > > > Same thing on the Vendor side when returning a product back to vendor. > > > > Thanks, > > > > Jame > > >
