Use the procedure to create an outgoing payment to a customer based on an A/R Credit Memo, or on A/R Invoice and A/R Credit Memo when only a partial amount is returned.
This might occur when goods purchased and already paid for by the customer were returned to the company (completely or partially).
Caution
You cannot create this type of document through the payment wizard.
Choose
.The Outgoing Payments window appears.
Select Customer, and choose the customer for which the payment is issued.
The table area displays the open documents and transactions (if you selected the option Display all Transactions) that are not reconciled yet:
A/R Invoices, A/R Down Payment Invoices, manual journal entries in which the customer is on the debit side, and amounts deposited to the customer and not to the bank that are presented with a negative sign.
A/R Credit Memos that are not based on A/R Invoices, manual journal entries in which the customer is on the credit side, incoming payments that are not based on invoices, and checks for payment that are presented with a positive sign.
Note
Down Payment Requests and Opening Balances transactions are not represented in the table.
Select the documents on which you want to base the outgoing payment and change the Total Payment amount if required.
Open the Payment Means window, specify the payment details and choose OK.
Choose Add.
Applied Amount and Open Balance/Balance Due in the document(s) are updated accordingly.
If the base documents were fully paid through the outgoing payment, the documents get the status Closed.
The transactions of the outgoing payment and the paid document(s)/transaction(s) are reconciled internally.
If base documents were fully paid, but the payment amount did not match the definition made in the Outgoing Amt Diff. Allowed or Outgoing % Diff. Allowed field of the Currencies - Setup window under
:Differences caused by a payment amount bigger than the amount due (loss) are posted to the account defined in
.Differences caused by a payment amount smaller than the amount due (gain) are posted to the account defined in
.You issued your customer an A/R Invoice for 285.27 (LC).
The customer paid the exact amount, and then returned part of the items, for which you issued an A/R Credit Memo for 120.06 (LC) (the credit memo is not based).
The customer now is entitled to a payment of 120.06 (LC), but you paid in cash only 120 (LC). The following is the table in the Outgoing Payment document for this customer:
Document |
Balance Due |
Document Type |
Total Payment |
1234 |
120.06 (LC) |
CN (=A/R Credit Memo) |
994.3 |
The amount specified in
is 1 (LC).The journal entry created by the payment will be:
G/L Account/BP |
Debit |
Credit |
Cash on Hand |
120 |
|
Underpayment A/PAccount |
-0.06 |
|
Customer |
120.06 |
The journal entries of the A/R Credit Memo and Outgoing Payment are reconciled, and the A/R Credit Memo is closed.