Credit Note

Hi I have a small problem. My client wants a functionality by which he can use a credit note to correct a posted invoice. The problem comes in when the item quantity is correct in the posted invoice and the thing that has gone wrong is the item cost. How can the credit memo be used to correct this type of wrongly posted invoice. The item valuation should be affected, also the vendor account as well as the tax should also get affected without the inventory being affected. Can credit note be used for this? My client is using 3.60 version. Can anyone suggest some thing on this. Regards and thanks in advance Tushaar

Perhaps this will help: Create the credit memo-header, then press Functions/“Copy Document…”; select “Document Type”::“Posted Invoice” and enter the original Document No (=invoice no); and remember to un-check “Recalulate lines”. You can also handle it manually by using the line-field “Appl.-from Item Entry” (and do not mix up with “Appl.-to Item Entry”!). Afterwards make a new (correct) invoice.

Hi Anfinnur Thanks for your reply. But I guess u havent read my question correctly. I dont want the Inventory of the item to be updated. But when a credit-memo is posted, the inventory of the corresponding item is updated. Thanks and regards, Tushaar

You could apply the credit memo to the posted invoice so that you apply the credit memo to the vendor ledger entry. Reducing the purchase amount can be done by using type “item charge” in the lines. you should setup a code with the same VAT group as for the item that you want to correct. Then apply the item charge to the posted purchase receipt lines. read online-help on how to use item charges. this will correct the item value entries but not affect the quantity posted to inventory.

Hi Beaver, Actually this is with respect to the localized indian version. The credit memo should also make the changes to the Tax Entries generated by the invoice accordingly and if possible the whole process through a single document.

my suggestion is processed in a single credit memo. It corrects the VAT by posting a new VAT entry with the reducing amount. If further tax entries are created in the indian version, then the functionality might have to be extended to also correct those entries. You should then post your question in the local indian forum.

Hi Tushar, While posting credit note/memo it gives three options 1. Receive 2. Invoice 3. Receive and Invoice what u can do is select invoice and it should solve ur problem. Regards[:)]

Rajan, at least in standard navision there is no such option on posting a credit memo. might be in the indian version? if you talk about a return order (which allows you to ship, invoice,ship+invoice), invoicing is only possible on shipped quantities so that would not solve the problem… the only solution I could think of is the one with the item charges, because it corrects vendor ledger entry, vat entry and item value entries and leaves the posted qty. untouched. Maybe someone else has a better solution??

Tusshar One more thing u can do? 1. Create a new Vendor Invoice. 2. Select the same vendor 3. Crete a new Item charge. 4. Assign item charge and while assigning click on the functions and get the receipt lines and add the charge to the existing lines. it should solve u r problem Regards[:)]