Applying a payment for an invoice which is linked to a credit note

Business Central/NAV
1

Hi All,

When over the counter customer comes in and pay for the stuff, we create the cash receipt later date. So untill the cash receipt is processed this invoice will have a remaining amount.
Then sometimes, this customer can come and return the goods and ask for refund.
When that happen, staff simply open the posted sales invoice and create corrective sales cr/adj note. (Credit note). Since the invoice is not linked to a payment, system let them do it.

Now the question is, how to record this payment as we can’t see this invoice in the Apply entries.

Thanks
Kushi

2

Kushiwarn,

If the Customer comes back and returns the goods why would you need to create a Cash Receipt payment? You gave them the money back and credited off the sale.

Thanks,
Steve

3

Hi Steve,

The reason is that, when we get the bank statement for EFT amount for the day, this payment will appear. So thats why we would like to link the payment to the invoice even though there is a credit note.
Actually, there is another scenario, sometimes customer may pay the same invoice twice. So our accountant want to record duplicate payments against the same invoice.

Thanks
Natasha

4

Kushiwarn,

OK, now I follow you have customer who actually pay at the counter via an EFT, not cash. You can, under the Cash Receipts Journal or Register Customer Payments to record the EFT payment against the Invoice so the application would appear. This will leave an overpayment, since you did a Credit Memo and you can process a Refund on the Payment Journal.

Thanks,
Steve

5

Hi Steve,

We are not able to see the invoice as there is no remaining amount against that invoice. This invoice is linked to Credit note so this invoice will not be shown to Apply (no remaining amount)

Thanks
Natasha

6

Natasha,

OK, so the Credit Memo is posted prior to the Cash Receipt. I would then enter the Cash Receipt and put it on Account against the Customer. You will never be able to do both since the Credit Memo closes the Invoice. If you put the Payment on-account you can do a Refund Payment Journal to give back the money.

Thanks,
Steve

7

Hi Steve,

Thanks for confirming this. I have informed the staff to do this.
They say previous ERP system allowed to apply payment even thought a credit note is linked to invoice.
They will have to add meaning full description when creating a Payment and refund…

Thanks