Our bookstore returns books to the publisher, and they will send us credit for what we return. These returns include orders from multiple purchase invoices.
I know normally when I get a credit(debit note) from the publisher(supplier) I match it to the specific invoice that the books were ordered on. However, for these return credits since there are multiple invoices, I don’t know how to deal with that.
We have a credit for $62.96. I don’t know what invoice or invoices this was ordered on. How can I use this $62.96 as a deduction on a payment and not have it automatically apply to another invoice? When you create the debit note, you have to choose which invoice to apply it to or it would do it automatically.
My workaround was creating the debit note for $62.96 and choosing an invoice I added to the payment already. This doesn’t seem like the correct solution but I’m not sure how else to add the debit note to the payment and not have it apply to a random invoice.
Hopefully this makes sense, it’s hard to explain. Thanks.
At the risk of misunderstanding your problem:
How can you be sure that you have received a credit note from the publisher of all returned books?
Do you keep a list of the returns?
If so, you could therefore assign a number per return/received credit note, and include this number with the credit note you want to create.
This way you can check which returns you have received a credit note from.
By the way, you don’t necessarily have to use the credit notes tab, you can also just enter a purchase invoice with negative numbers. If desired, you can also change the title to Credit Note.
They send us a copy of what they received, and we have a copy of what we returned. We do have return numbers for all returns we send in. I was already adding in the return number in the debit note, but it was still automatically applying to invoices if I didn’t choose one.
It sounds like creating a negative purchase invoice would be the easiest way. How do you go about changing the title of it? Thanks.
Sorry @vruton I made a mistake.
Changing the title, in a simple way, of the document is possible in Sales quotes, Sales orders, Sales Invoices and Delivery Notes but not in Purchase Invoices.
Maybe @lubos can have a look at this to make it possible?
Now I’m running into a situation where trying to use the negative purchase invoice as part of a payment is increasing the accounts payable balance instead of decreasing it.
My issue was I didn’t want the debit notes to apply automatically if there wasn’t a specific invoice selected. I didn’t want an invoice to show as paid because of a debit note. However, I think how it works is, the debit note is auto applied to invoice x. You then add invoice x to a payment and then that debit note is now applied to invoice y. I did a test and I think that’s what happened, but can anyone confirm I have that right? If so, then I can use the debit notes as intended.
I’ve also noticed that you don’t choose a debit note when creating a payment. As an example, a publisher gives us a $10 credit that we use on our next payment to them. Is the best way to do that, just apply it to an invoice we’re paying on this payment? That way the amount we pay is the same. That seems like the best way to me. Thanks
If I use a negative Purchase Order, it’s crediting the Accounts Payable account which makes sense, since it’s a liability account. So, that doesn’t seem to be the way to go, since this is increasing what we owe.
I’m trying to get our payments we make to the publishers to match what’s in Manager but it’s proving quite difficult. Two main issues:
We receive a damaged book and get a credit for $10. I can apply that to the invoice we received the book on but that invoice isn’t due for 90 days. We use that credit on this month’s payment. So, if I apply that $10 credit to an invoice we’re paying off this month, that would match the payment at least. The actual invoice would have the full amount still due, which is fine because we would pay that full amount in 90 days.
If we’re doing a return and returning a lot of books. We tell the publisher we’re returning $1,000 worth of books, we’re withholding $1,000 from this month’s payment. They then give us credit based on what we returned. They might give us $950 and we then pay the $50 difference next month. How do I account for that $1,000 withheld payment. I can’t use a debit note in the payment. I can only apply it to one invoice. We don’t have an invoice we’re paying off this month for $1,000. If I don’t choose an invoice it applies to old invoices and marks them as paid when they aren’t paid.
I’m going to create the next post with my current system and maybe I’m just doing something wrong in manager. Thanks.
We receive an invoice from the publisher(supplier), for $500. I add it to Purchase Invoices in manager, with the terms, amount($500), assign it to Publisher Expense account I created. This increases the Publisher Expense account by $500 and the Accounts Payable account by $500.
When it comes time to pay I add this Purchase Invoice to a new payment. When I create the payment, this invoice now has a $0 balance. This has reduced the Accounts Payable account by $500. This payment has no effect on the Publishers Expense account.
If I have the above correct, it all makes sense to me. My problem is when we receive credits and matching them up with our actual payments to the publisher per my above comment. Thanks.