Sales Invoice - negative line values

Hi,

When raising a sales invoice is it possible to create negative item values / line values in NAV?

The reason I ask is that we regularly raise deposit invoices (i.e. for a deposit payment / down payment / stage payment in advance of shipping, call it what you will), and once the goods are ready, the ideal format for the final NAV invoice (following on from the first invoice for the downpayment itself) would be, for example:

Line 1 : Value of goods £15,000

Line 2: Less down payment already invoiced / received (£5,000)

Invoice balance £10,000

This way we are able to recognise the total value of the goods in the approriate P&L revenue account in the general ledger (invoice line 1), and the movements in the balance sheet for the down payment (Credit downpayments in the balance sheet in the initial invoice, then effectively debit the same account via the “negative” value on the final invoice (line 2), thus clearing out the balance sheet, “releasing” the liability of the customer deposit / down payment).

Currently we are unable to do this in Sage MMS, so wanted to check with NAV users…

Thanks

Mark

Did you try it? As far as I know it is possible - no problems at all.

Currently use Sage MMS (which can’t handle negatives on invoices!) - as a company we’re looking at an integrated solution (like NAV). This was just one of those little questions that seemed better to post on here…

NAV 5.0 has a pre-payment support. If you are migrating to a new version of Navision it’s better to check that feature.any special doubt?

Yes it works fine in all versions of Navision, at least since 2.0. as that is where we started with Navision and we do this daily.

we are currently on Nav 4.0

you can negative items, resourcs, and g/l accounts

Standard functionality allows both positive and negative lines on a sales invoice as long as the total amount to post is positive.

Navision supports creating sales lines with negative quantity. A negative line in a sales order is a sales return.
But if I’m not in mistake, Mark UK is trying to simulate a pre-payment made by a customer trough a negative sales line. Nav 5.0 supports pre-payment.
Negatives lines, incorrectly handled can lead to incorrect item cost.

He does state he runs an invoice to record the pre-payment to a g/l balance sheet account, and he is simply using the negative g/l ententry on the final sales invoice to reverse that entry, this is a safe and effective way of handling pre-payments, and will not lead to any costing issues.

it also is a clear way of showing the customer the transactions, they get an invoice for the required down payment and they get a final invoice for the goods, less the down payment.

haven’t seen yet how Nav 5 is going to handle the pre=payment, but hopefully it is exactly like this. as it is clean and accurate.

If negative line is a G/L line there isn’t any problem. There might be some problems if negative line are items.

Sorry for not explained correctly.

This is a very common request in Navision, especially for companies that have Job Lot type invoicing. Many companies rely on this for cash flow, say in the case where you have shipped $49,000 of a $50,000 order, but you can nly invoice the exact amount, so you could wait a month for $50,000 just for a small item that has not shipped.

Its quite easy to do in Navision, you can do it manually and then just create a special form of the invoice report, or you can automate the whole thing. (I have done both).

First you ship as much as possible to the client. (Of course in some cases this will be nothing, but it works either way).

You now create two new lines on the order. They are type GL, and they both post to the same account “Advance Invoicing” etc. The lines are identical except for qty, 1 on the first line, -1 on the second line. The amount on this line you get by pressing F9, and find the difference between Amount on Order, and Amount Shipped. Enter this difference into both amount fields.

Now on the first line, set Qty to Ship = 1 and Qty to invoice = 1 On the second line set Qty to ship = -1 and qty to invoice = 0 DON’T get that bit wrong.

Now post the invoice, which will be for the full amount.

Once you ship the items, post the remainder, and since this amount will be the same as the second gl line (except minus) the next invoice will be zero. But it will reverse out the accruals automatically.

I have had this request many time, and resolved it many ways, but this is IMO the best solution. If you want you can make a function to automatically create the GL lines, and modify the invoice to look nice. For example, most clients want to list all the items on the invoice but with no price, since its a job lot.

Many thanks for all your replies.

Mark

You are welcome Mark.

Please could you also mark the thread as resolved. You could also mark the reply that resolved the issue, and give a star rating.