18.12.22 WINDOWS
Hello @lubos
There seems to be a bug with how the invoices are marked as overpaid.
In my case, i have never selected any invoice when recording a receipt. (i have checked again just to be sure).
but even then, when a credit note is recorded with the relevant invoice selected, the same is shown as overpaid in the sales invoices tab.
there are no issues if the invoice is not selected in the credit notes tab. but selecting the invoice is necessary in most cases.
If an invoice (#12546) has been marked paid by the automatic distribution of a receipt and then at a later date you specifically allocate a credit note to that same invoice (#12546) then it is going to be overpaid as it has received two credits. The automatic distribution done last week can’t be adjusted by a credit note issued today.
If the credit note was allocated first then there shouldn’t be a problem.
I think your solution (?) is to go back to automatic distribution entry and add a line for that specific invoice and enter a value less the credit note and leave the remainder of the receipt on automatic distribution.
EDIT: I just realised that the remainder of the receipt on automatic distribution may also make that invoice fully paid, so somehow the credit note has to be recorded against the invoice before the receipt is allocated.
Thank you. but your suggestion may not be suitable for many business including mine.
a product under 5 years guarantee maybe returned after 4 years of its invoice date which was fully paid. there is no real world possibility to issue the credit note in advance calculating the probability that it would be returned.
if automatic credit allocation, rather than considering just the Accounts receivable as a whole, still takes into account specific invoices even when the user has not manually selected any, then it defeats its on purpose. moreover the customer may still have other outstanding dues and instead of marking an old invoice Overpaid, Manager should automatically allocate the excess to the overdue invoices.
how would a user know which receipt is automatically allocated to an invoice? there is no guarantee in a business scenario that each invoice will be paid in full before another invoice is issued to the same customer. there would be a few many invoices already issued to a customer when receiving a partial payment for an invoice issued initially.
Understanding your points, but if an invoice was shown as fully paid 4 years ago, you can’t issue a current year credit note and expect that it can be allocated against that paid invoice. The credit note should be issued noting (not allocating) the invoice to which it relates but be available to offset against current outstanding invoices.
@sharpdrivetek, I think you are trying to operate (unsuccessfully) in two different ways at the same time. Since you want to preserve the possibility of returns for five years, you can either designate all receipts and credit notes against specific invoices or let the program auto-allocate to the customer’s account. But you cannot do both.
this is true. i did not know allocating and noting were two different things in Manager.
but a business needs to know and have a link to the invoice against which the credit note was issued.
moreover the Customer Transactions report anyway do not show the invoice details against which the credit note was issued. so why not just balance the Accounts receivable as a whole rather than considering the balance due of particular invoices?
@Tut as per our govt procedures we should clearly mention the invoice against which the debit or credit note is issued irrespective of the invoice age.
this is also a mandatory field for our tax returns filing.
Then you should probably be allocating receipts, payments, credit notes, and debit notes to specific sales and purchase invoices in Manager in order to support what look like very burdensome requirements from your government.
this exactly is the trouble i explained initially.
just like the input tax credit in almost every govt is adjusted in our tax returns as a whole, Manager should adjust the credit note with the Accounts receivable as a whole and not against particular invoices. the invoice selection in a credit note should be for informational purpose.
@sharpdrivetek, I must differ with you. You initially complained because mixing processes of specific versus automatic allocation results in overpaid invoices. It was subsequently explained why mixing the two approaches is not suitable. After you furnished further information about your government filing requirements, I wrote—in the post you quoted—that specific allocation would be the better choice. So I don’t believe this is what you explained initially. You were explaining what you thought was a bug. I was stating why the specific allocation approach is the preferred choice for your situation.
You cannot have things both ways. Manager actually will include the credit note in the overall Accounts receivable balance, yet still maintain the record of a specific invoice being overpaid. But that won’t satisfy your needs for government flings. Therefore, the specific invoice allocation is necessary.
That is incompatible with the need to both avoid overpayment and support your government filings. The first of these also requires specific allocation of receipts. It must be either all or nothing when it comes to allocation; your government requirements make it all. As I wrote in my first post in this thread, you cannot mix approaches.
It is a totally irrelevant argument if the user should have used automatic or specific receipt allocation four years ago for a credit note that is being issued today, Neither system allows for that invoice, which had been fully paid at that time, to be retrospectively adjusted by the current credit note.
Furthermore, the government procedures don’t require the user to actually “allocate” within their accounting system the credit note to a specific invoice, they just require that the user “declare” within the tax filing that the credit note has a relationship to a particular invoice. Read the wording on the form.
Yes. Within the credit note form the “Invoice” field is optional. If you want to allocate it to a specific invoice then use it, however, leaving it blank and using the “Description” field instead will provide the opportunity to have both the linking (noting) to an invoice and the adjustment available to the Accounts Receivable as a whole.
Since version (19.1.18), automatic credit allocation won’t get into the way when manually allocating receipts (or credit notes) against invoices.
