DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Credit Notes are not reflected in Sales Invoice by Item


#1

‘Customer Test Customer (£)’ is buying Milk.
In March he has bought Milk for £1,500.00 (+VAT), invoice MILK001 has been issued, but then changed mind end returned Milk for £500 (+VAT) back.

Credit Note has been issued for this transaction, and PL statement shows right income amount £1,000

but ‘Sales Invoice by Item’ report still shows Milk £1,500.00, what is not right and obviously is not taking into account Credit Note, what is incorrect, because item has been refunded.

Both Invoice and CN has got the same item MILK in form:


#2

You misunderstand the purpose of the Sales Invoice Totals by Item report. Its title is very literal. It reports sales invoices. It does not report credit notes. Nor would it report the same sale if it had been done on a cash basis using a cash receipt form.

That report is not meant to match the balance of the Sales income account (or wherever you are posting the sales figures) on the Profit and Loss Statement. Nor will it match the drill-down 0n the Summary page. It is a way of obtaining some information, but not corroborating information.


#3

But then it can be very inaccurate. For example, if I have 10 litres of MILK and sell it, I refund 4 litres and then sell these 4 litres again, then I will have sold 14 litres, although I had only 10.
So I cannot rely on that making reports…


#4

So what is the purpose of that report then? I really do not get it.


#5

i am sorry but your explanation makes me feel it is just a useless report.
but when i think about it, you are correct. the report title clearly says Sales Invoices and not Sales.

anyway a report is supposed to give the exact details of sales made by a business (cash or credit) and not just sales invoices. now i know i do not have any use of these sales invoices report. they would not report the actual sales of a business but only sales invoices.

i hope @lubos would give a thought on this.


#6

The purpose is exactly as the title says: Sales Invoice Totals by Item. The same thing is true of Sales Invoice Totals by Customer and Sales Invoice Totals by Custom Field. Program behavior is exactly as designed and described in this Guide: https://guides.manager.io/12310.

These reports were created at the request of many users. You might not like them, but others do. Suppose you wanted to rank buying history of customers. The Sales Invoice Totals by Customer report gives you that. If you want complete customer history, that’s available in the Customers tab.

Or suppose you wanted to compare sales of an item in two different seasons to assess the effectiveness of an advertising campaign. Sales Invoice Totals by Item would tell you that information. The fact that a customer later returned an item has nothing to do with the effectiveness of the advertising campaign. And you can find such information elsewhere in the program.

The fact that a particular report does not give the exact information you might want does not mean it is useless to others. If you want details of all sales, drill down on the sales income account, where you will have both cash and credit sales.


#7

I’m not against extending the report so it includes credit notes.

For most businesses, credit notes are so rare, it’s immaterial.


#8

it would be better if the sales reports are extended to include both cash and credit sales.
similar reports for purchases would be an additional improvement that will benefit users.


#9

I would suggest add column for Total for number of items sold over period next to total of amounts. This would make much easier to workout avarage sales prices: