Credit invoice (Sales)

There are situations in which a sales invoices may have to be credited and/or a received payment returned. In this page the different credit invoice situations will be discussed.

  

Invoice can be invalidated

If the invoice status is Unfinished or Not sent (not when the invoice channel is No sending), the invoice can be invalidated.

1. Open the sales invoice and go the the Invoice view (Go to > Invoice).
2. Click Edit > Invalidate.

This will delete any accounting entries generated from the invoice.

 

Credit invoice function

Credit invoices are made when there the original invoice cannot be invalidated. The credit invoice can be created straight from the original sales invoice.

1. Open the original sales invoice and select Edit > Create a credit note. 
   • The function creates a credit invoice for the sales invoice. The invoice rows on the credit invoice are identical to those on the original, except that their sums are negative.
   • The Additional information field on the invoice indicates the invoice to which the credit invoice is related.
   • The credit invoice will be posted according to the posting defaults.
   • The credit invoice will open on the screen in Unfinished status, which permits it to be edited.
2. Edit the invoice rows so that the rows are crediting the right products if necessary (for example if the credit invoice does not credit the whole original sales invoice).
3. Click Approve button when the invoice is ready. This will open a window for specifying the payment date, creating a purchase invoice and sending the credit invoice.
   • Mark paid status should be selected if you wish to set the original invoice and credit invoice to this status. It will credit the original invoice the amount of the credit invoice and if the original invoice sum is greater than the credit invoice sum the original invoice will get a status of Partly paid. 
   • Create purchase invoice field will be available for selection if the original invoice has been paid before the credit invoice was created. If this field is ticked, the program will create a purchase invoice for returning the payment. This function creates a purchase invoice whose invoice rows are identical to those on the credit invoice, except that their sums are positive and do not include VAT. The Additional information field on the invoice indicates the invoice and credit invoice to which the purchase invoice is related. The purchase invoice will be posted per 1700 Accounts receivable an 2880 Payment transactions account.field will create purchase invoice if the money has to be payed back to the customer.
   • Tick the Send credit note field if you would like to send the finished credit invoice to the customer.
   • Enter the desired payment date in the Payment date field.
   • For payment method choose the right method from the drop down menu.
   • The credit invoice number will be saved as the transaction description by default, but this can be changed. The saved payment transaction information will be used on both the original invoice and the credit invoice.

 

4. Click Continue when the settings are ready. 

More detailed instructions about different credit invoice situations are above. 

 

Invoice cannot be invalidated but remains unpaid

If the status of the invoice no longer permits it to be invalidated, you must create a credit invoice. Follow the credit invoice instructions to the 2nd step and select the following in the 3rd step:

• Mark paid status should be selected if you wish to set the original invoice and credit invoice to this status.
• Tick the Send credit note field if you would like to send the finished credit invoice to the customer.

By default, the Sales invoice has been entered per 1700 Accounts receivable an 3000 Sales. The credit invoice will correspondingly be entered per 3000 Sales an 1700 Accounts receivable. Such an entry will also correct the sales VAT if the invoice included VAT.

 

An invoice has been paid but the money will not be returned

You have agreed with the customer that an incorrectly paid invoice will be credited and the customer will deduct the overpayment from its next payment. Follow the credit invoice instructions to the 2nd step and select the following in the 3rd step:

• Tick the Send credit note field if you would like to send the finished credit invoice to the customer.

Mark the credit invoice as Paid elsewhere when the crediting is done from the sales invoice. For example if the crediting is done from the next sales invoice mark the credit invoice as Paid elsewhere with the same date as the sales invoice Paid elsewhere mark. 

• Paid elsewhere mark can be done from the sales invoice Special situations view (Go to > Special situations).
• Click Add payment transaction button and set the sum of the credit invoice to Pay field.
  • If there is balance left in the sales invoice and the credit invoice sum does not cover the whole sales invoice, the sales invoice status becomes Partly paid. After this the sales invoice waits for an other payment transaction.
• Mark the credit invoice as Paid elsewhere as a whole.

Posting will be as following:

• The first sales invoice was entered into the accounts per 1700 Accounts receivable an 3000 Sales.
• After a payment has been allocated to the invoice, an accounting entry per 1910 Bank account an 1700 Accounts receivable has been created.
• The credit invoice has been entered per 3000 Sales an 1700 Accounts receivable.
• The new sales invoice has been entered per 1700 Accounts receivable an 3000 Sales.
• A payment with a sum equal to the invoice sum minus the credit invoice sum has been allocated to the invoice and entered on the bank statement per 1910 Bank account an 1990 Payments in transit and balancing difference, and as a reference payment per 1990 Payments in transit and balancing difference an 1700 Accounts receivable.
• The end result will be that the balances of accounts 1910 Bank account and 3000 Sales have increased by the amount of one sales invoice.

 

An invoice has been paid and the money will be returned

You have agreed with the customer to credit the incorrectly paid invoice and return the money to the customer. Follow the credit invoice instructions to the 2nd step and select the following in the 3rd step:

• Mark paid status should be selected if you wish to set the original invoice and credit invoice to this status. It will credit the original invoice the amount of the credit invoice and if the original invoice sum is greater than the credit invoice sum the original invoice will get a status of Partly paid. 
• When Create purchase invoice field is ticked, the program will create a purchase invoice for returning the payment. This function creates a purchase invoice whose invoice rows are identical to those on the credit invoice, except that their sums are positive and do not include VAT. 
• Tick the Send credit note field if you would like to send the finished credit invoice to the customer.

Create a purchase invoice which has the same amount as the credit invoice and pay the money back to the customer. 

Posting will be as following:

• The invoice will be posted per 1700 Accounts receivable an 2880 Payment transactions account. For such purchase invoices, you should create a product in the purchase product register with a Default account of 1700 and VAT 0%. When you use this product, the posting and VAT will automatically be correct, and the product will be differentiated from regular purchases on reports.
• Pay the created purchase invoice to the customer, and it will be entered as paid from the bank statement per 2880 Payment transactions account an 1910 Bank account.
• In accounting, the sales invoice has been entered per 1700 Accounts receivable an 3000 Sales.
• After a payment has been allocated to the invoice, an accounting entry per 1910 Bank account an 1700 Accounts receivable has been created.
• The credit invoice has been entered per 3000 Sales an 1700 Accounts receivable.
• The purchase invoice has been entered per 1700 Accounts receivable an 2880 Payment transactions account. The payment has been entered per 2880 Payment transactions account an 1910 Bank account.
• No account balances have changed as a result of these entries.

 

 

An invoice has been paid twice and the money will be returned

The customer has paid the same invoice twice and you have agreed that the money will be returned to the customer.

1. Create a purchase invoice that has the same sum as the over payment and VAT-free .
2. Pay the invoice.
3. The original sales invoice has a status of Partly paid.  
   1. Move to the original sales invoice and go to the Special situations view (Go to > Spacial situations).  
   2. Click Add payment transaction button and set the sum of the over payment (negative sum) to Pay field. Procountor will suggest the amount of the over payment as a default. 
   3. Click Continue
   4. The original sales invoice should have a status of Paid elsewhere. 

Posting will be as following

• The purchase invoice will be posted per 1700 Accounts receivable an 2880 Payment transactions account.
• In accounting, the sales invoice has been entered per 1700 Accounts receivable an 3000 Sales.
• When a payment has been allocated to the invoice, a bank statement entry per 1910 Bank account an 1990 Payments in transit and balancing difference, and a reference payment entry per 1990 Payments in transit and balancing difference an 1700 Accounts receivable have been generated.
• The new payment has generated the bank statement entry per 1910 Bank account an 1990 Payments in transit and balancing difference and reference payment entry per 1990 Payments in transit and balancing difference an 1700 Accounts receivable.
• The purchase invoice has been entered per 1700 Accounts receivable an 2880 Payment transactions account.The payment has been entered per 2880 Payment transaction account an 1910 Bank account.
• As a result of these entries, the balances of accounts 1910 Bank account and 3000 Sales have increased by the amount of one sales invoice.