Hello. I have run into an issue with one of my clients who are raising trouble with us and their accounts department. Currently, on an invoice when I apply a credit note, it is applied after the tax. The client wants the credit note applied BEFORE the tax on the invoice. Is there a way to do this? I have read many guides and checked the forum and still not found a solution.
I think you shouldnât even send this edited invoice to the customer but only the credit note as the customer already has the original invoice.
Show the edit screen of your credit note - it looks like it is not entered correctly
How much is the credit note for?
The credit note is for 20% of the total invoice. Itâs not a flat amount
But their accounts department has to pay the amount shown on the invoice. So when I donât include the credit note it is a problem for them.
Why? They cannot deduct the credit note amount from the invoice amount?
Government department. The way they work is very specific âŚthey cannot deduct the amount from the invoice. They can only pay what the invoice states.
Or they would have to go through a weekâs process of reproducing a new Local Purchase Order for the new invoice amount and that is a whole other drama.
any ideas?
So they have an invoice, a credit note and now they allow you to change the original invoice, which in nearly all countries is illegal? Original invoice - credit note = amount owed. I think you should send them a customer statement but not an edited invoice.
I will try that and hear what they say. Thanks for the input.
Oh and this is the original invoice. We have a pre-arrangement that for the next 3 months, 20% will be deducted from all original invoices.
Setup a line on the invoice called discount for the amount to be discounted
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Why didnât you mention that in your first post? 14 messages for a âproblemâ that can be solved by simply entering a 20% discount, just as @Joe91 indicated.
Hi sorry no. I called them about that and it cannot be entered as a discount.
The best solution would be for Manager to give me the option to deduct a credit note before tax and not only the option for after tax but I guess that would be coding for just my unique situation. We will have to figure it out manually. They were very adamant that it absolutely could NOT be entered as a discount. Near took my ear off.
They are not following accountancy rules
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Sorry to come in so late but I would not support your idea @Sarai because it is just not legal in places where we work nor does it seem practical. This is just unique to you and I do not think any software should change its good principles because of individual exceptions. If you can not use Manager because of this then maybe you can find another application that does do what you want.
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Instead of describing the additional line as a âdiscountâ would calling it a âcreditâ or âcredit amountâ work for them?
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