You use one of the following localizations of SAP Business One: Australia, Austria, Belgium, Brazil, Canada, China, Czech Republic, Denmark, Finland, France, Germany, Hungary, India, Ireland, Italy, Japan, Korea, Netherlands, New Zealand, Norway, Panama, Poland, Portugal, Puerto Rico, Russia, Singapore, Slovakia, South Africa, Spain, Sweden, Switzerland, United Kingdom, USA.
You can create invoices with negative totals. This allows you to bill and refund a customer or vendor in one single document. This may be convenient for example, if you as a sales person are on the phone with a customer who is ordering certain items, but at the same time wants to return some items that he ordered previously. In this case, instead of posting an A/R invoice and a credit memo, you enter the items that the customer purchases as a positive quantity and the goods the customer intends to return as a negative quantity.
Recommendation
We recommend that you consider carefully whether you would like to record two opposite transactions in one document. Posting two documents helps to improve transparency in accounting.
You can generate the following documents with a negative total:
A/R and A/P invoice
A/R and A/P credit memo
An A/R delivery
An A/R return
An A/P goods receipt
An A/P goods return
The inventory valuation behavior of the documents with negative totals is as outlined in the table below.
Type of Transaction |
Similar Transaction |
Inventory Account |
Balance Account |
Profit & Loss Account |
---|---|---|---|---|
Goods receipt P/O |
Goods return |
Inventory |
Allocation |
|
Goods return |
Goods receipt P/O |
Inventory |
Allocation |
|
A/P Invoice |
A/P credit memo |
Inventory |
Vendor |
Negative Adjustment Account, Price Differences Account |
A/P credit memo |
A/P invoice |
Inventory |
Vendor |
Negative Adjustment Account, Price Differences Account |
Delivery |
A/R return |
Inventory |
COGS |
|
Return |
Delivery |
Sales Return |
COGS |
|
A/R invoice |
A/R credit memo |
Inventory |
COGS |
|
A/R credit memo |
A/R invoice |
Sales Return |
COGS |
|
Goods receipt P/O based on goods return |
Goods return based on goods receipt P/O |
Inventory |
Allocation |
Negative Adjustment Account, Price Differences Account |
Goods return based on goods receipt P/O |
Goods receipt P/O based on goods return |
Inventory |
Allocation |
Negative Adjustment Account, Price Differences Account |
A/P invoice based on goods receipt P/O |
Credit memo based on goods return |
No inventory transaction |
||
A/P credit memo based on goods return |
A/P invoice based on goods receipt P/O |
Vendor, Allocation |
Price Differences Account, Negative Adjustment Account |
|
A/P credit memo based on A/P invoice |
Invoice based on credit memo |
Inventory |
Vendor |
Negative Adjustment Account, Price Differences Account |
Delivery based on return |
Delivery based on return |
Inventory |
COGS |
Negative Adjustment Account |
Return based on delivery |
Return based on delivery |
Sales Return |
COGS |
Negative Adjustment Account, Price Differences Account |
A/R invoice based on delivery |
Credit memo based on return |
No inventory transaction |
||
A/R credit memo based on return |
A/R invoice based on delivery |
No inventory transaction |
||
A/R credit memo based on invoice |
A/R invoice based on credit memo |
Sales Return |
COGS |
Negative Adjustment Account, Price Differences Account |
Note
You cannot copy sales or purchasing documents with a negative total into correction invoices.
Relevant for India: Due to legal restrictions, you cannot copy sales or purchasing documents with a negative total into incoming or outgoing excise invoices.