Sales Invoice Custom Adjustments

Manager adds “transaction events” to the bottom of sales invoices: receipts, late payment fees, and credit notes. These entries show the TITLE of the event (“receipt”, “late payment fee”, or “credit note”), the DATE of the event, and whether the event INCREASES or DECREASES the invoice balance. However, there doesn’t appear to be any way to customize, or rename, such events.

For example, let’s say a payment by check is received, and a receipt is entered. Then 4 days later, the check bounces due to NSF. Currently, one has two options: one can either delete the receipt, which removes the history of the NSF event (not a good method, because one wants to keep track of customers who write bad checks), or one can issue a negative credit note, but that is confusing to the customer, and doesn’t explain what actually happened.

There should be a way to add “custom events”. In this example, I would enter an event titled “Payment returned NSF”, followed by another event, titled “NSF fee”. Both of these DATED events would cause an increase in the invoice balance, and the end result would show ALL historical events clearly labeled. This way, if you look at the invoice any time in the future, you would see exactly what occurred, in chronological order. Please consider adding such functionality.

You cannot just add “events” as though they were notes. The mini-statements on the bottom of invoices can only be drawn from accounting transactions. To address your specific examples:

  • The dishonored check must be handled by one of the methods discussed in the Guide: You are correct that when a sales invoice is involved, deletion of the receipt is generally not a good option, so you are left with the negative credit note. I wonder why you are worried that the customer might be confused. The customer knows the check was dishonored. Why contribute to any fantasy they might harbor that they have paid their bill? They should expect an adjustment to their account, and you should provide it.

  • The NSF fee is not a transaction that involves the customer in the first place. It is a transaction involving only you and your bank. Granted, you may want to pass that charge along to the delinquent customer, but that must be by a separate transaction. Your choice is to modify the original invoice with a new line item and send it to the customer as a modified invoice or generate a separate invoice covering the fee.

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That sounds like a lot of work just to keep track of check bounces.

If you never apply the payment untill the check is cleared then you can track bad payment record using the age, because if the check bounces then the invoice will be outstanding for longer.

What you can do instead you can issue a zero valued receipt for checks with a positive and negative lines for accounts receivable. Once the check clears you remove the negative line.

You will not delete any entries or issue credit notes.