Dear All,

In the past there have been instances where the amount receipted against a particular invoice has exceeded the invoice amount. This has resulted in negative amounts appearing for invoices in our Customer Outstandings. For example, if we have an invoice for Rs. 100,000, receipts have been allocated against this for Rs. 150,000 showing a negative amount of Rs. 50,000 against the invoice.


Invoices can be set off by Credit Notes. However, since the invoices are negative amounts, we would need to pass something similar to a Negative Credit Note, which we do not know how to create.

We are looking for suggestions as to how we could resolve this problem.

Thanks,

Srilal.

How about a negative reciept? If the customer has overpaid invoices, surely you would have to return the cash to the customer?

Maria,

There was a period in our Company where the allocation of receipts was not properly carried out. This has resulted in some invoices showing negative amounts and some old invoices remaining as outstanding, as receipts were not allcated properly.

For eg. if a cheque received for invoice no. 003 was banked and this receipt instead of being allocated against invoice no. 003, was allocated against a settled invoice, the settled invoice would have a negative amount and another invoice would remain outstanding.

At the end the Total Amount outstanding would be correct, as these would cancel out each other.

But in our customer outstanding statements such old negative invoices and outstanding invoices continue to appear. Whilst it is possible to allocate a Credit note to the outstanding invoice and debit a suspence a/c which could be created for this purpose, it is not possible to pass a negative credit note to set-off the negative invoice, nor is it possible to pass a Debit Note against the invoice to clear the old balances.

Thanks,

Srilal

Hello,

do you have a transaction type with sessions tfacr2120s000 and tfacr2121s000 which allows negative amounts?

Regards, Juli

Juli,

tfacr2120s000 & tfacr2121s000 deal with the assignment of Credit Notes. Prior to assigning these, a Credit Note has to be put in the system and posted under tfacr4100m000. This does not allow negative amounts to be put.

Srilal.

It is also possible to do credit notes through Maintain Transactions using sessions tfacr1110s000 and tfacr1111s000. There is the option to allow negative values.

Dear Srilal,

The following can be done to solve your problem.

First you need to create a transaction type for cash transactions, In the field contra account give the code of the suspense account that you have created to set off the correct invoices. This transaction type must be set to allow negative values. Use this transaction type to create a negative receipt against the require invoice. This would make the balance of the invoice zero. The entry passed would be credit the suspense account and debit ACR control for that invoice.

This suspense account would have been credited earlier when the Invoice was being set off and thus the control account becomes zero and the invoice balance also becomes zero.

Sudarshan :)

Dear Sudarshan, Juli & Maria,

Thanks a lot for your suggestions.

The advise we got to resolve the problem from BaaN Global Support was the same solution outlined by Sudarshan.

We have use this and resolved our problem.

Srilal.