Create a Credit Invoice Example for Procurement Effortlessly

Credit invoice example for Procurement

hello everyone uh in today's session  we will see how to uh create a credit   note which is a reversal document  for uh for a vendor invoice and uh   that vendor invoice definitely is a po  invoice or purchase order invoice so   there are multiple ways of doing it we  will discuss about for example two ways   for example there is i will show you i have noted  already the details of that purchase order and   i will just show you by going to the ap  module or procurement and sourcing module   uh a purchase order which has already  been in product received and invoiced   so so this one is the purchase order  and you can see the accounting date here   and the number of purchase order is 33 vendor  number is 1001 and this is totally invoiced and   the details are shown here and i will show you uh  in the receive first tab the journal for product   receive is enabled and similarly in invoice  tab the invite journal is enabled so it means   this is totally received and also the invite has  been posted so product received number is noted   here and the date of product received which i  have already noted in the line here as well as   the item number is 1000 and quantity 200 is shown  in the line step item is shown and the quantity   is also shown here 200 is received so that that  will that is the product received and similarly   similarly if you go to the invoice fast tab and in  journals group invoice this is the invoice journal   and the details of this is also noted here the  invoice number is this one and there is a voucher   number which is also available so the voucher  number is also available which i can put here this   is for our ledger part this is our invoice number  and the date of invites is 12 of december with the   amount is 179 800 is the invoice amount in usd's  so this is our uh and there is only single line so   this is totally completely invoicing the purchase  order so what if if we think that this is a wrong   you know uh wrong invoice or product receive or  purchase order and we totally want to reverse   the effect so basically there are two ways one  ways is to create another purchase order and then   and then use the credit note functionality  and there is one more way which is inside   this purchase order which is already invoiced  we can open it we will first discuss this way okay and in this you can see that  there is only single line available   so what we need to do is and and status  is invoiced what we need to do is just go   to the purchase order line here uh in  the options and go to uh from general okay and just select the header  and the line is already there and   then you can go to the parameters and  select the invert sign yes you can also   select delete purchase line but that would  not be feasible i mean the previous lines   will be deleted so that is also not available to  select from here but sometime it is available so   it is not i mean advisable to select it  here inward sign is now selected as yes and so i will select this one and  product receipt is already selected so i just need to copy the product receipt   just ignore this confirmation product receive is  already selected and from this the line is already   selected i will just press ok what it will do it  will copy this line from product receive journal   with the negative or inverse sign so then what we  can do is uh do the product receive against that   line that will reverse the effect you can see here  the quantity is now negative remaining is the same   net amount is now negative so we are not making  use of any new purchase order rather we are doing   is in the same uh you know part of same purchase  order and now you can see the purchase order has   been turned to the open order status instead  of invoice because a new line has been added   so once you you have added the line you  can just confirm this purchase order and once it is confirmed then you can go ahead  with product receive okay now it has been   confirmed status is shown and just go ahead with  the receive option and go to the properly received okay so in the product received the number here  you can make use of the previous number and and put a reverse uh you know prefixed  like reversal of uh that previous number   and the product received  it instead of today you can   put the same date so that the reversal  is also being done in the same day so that i have put and now you can check the  line here line is totally a negative with   the negative effect same amount like  invoice amount so you can just go ahead so now you can see the product receive is uh shown as a printout and  the same negative amount is there and you can   if the hard copy or pdf is required so you  can save this as a pdf or hard copy and once   it is done so the status of purchase order is  now received and now i will go to the invoice so in the invice posting form we can make use  of the same number just like previous one and   make a reverse prefix with the hyphen and invoice  number is noted and then the date i also need to   make use of the previous date previous is  a posting date and all that should be the   previous one you did and invoice date  everything is previous and you can note down the   amount here and which is a negative amount and the  product received is also shown here which is which   was the negative product received the physical  was reversed and i can update match status here so this is now passed and once it is  done then if if you want to check the   totals you can do so by pressing the  total button here so that all breakdown   if there is a sale tax or anything else so it  will be shown or cash discount it will be shown   so just after this just go ahead with the posting so posting has been done and that checkbox i  did not select so you can just make you know   the preview original preview of the journal which  was posted so that a printout is also shown to you you can at the time of posting invites you can  press the checkbox so that at the same time it   will show you the effect date you can see here  the date is also used as same because i changed it okay so now you can see here the even the  label is now changed to the credit note and   you can see at the bottom that all  the negatives are negative amount and   you know quantity is shown here so this is the  credit note and one more thing is important   uh because in the inventory we have  already marked it and but for the vendor so right now i am on the purchase order level and   on the purchase order level just go ahead  to the header and copy the vendor number you can directly go to the vendor from here okay once you are in the vendor form  you can go to the invoice fast tab   and then go to the settle transactions okay in the setup transaction now we can make use of the invoice number   and check whether it is available  or it was already settled down   you can just use the contains filter here apply  the invoice number and only reversal is shown it   means the previous invoice was already settled you  can go to the undo settlement and there you can make a filter of previous invoice number so this  is available so you can mark it   and once you have marked it you can just clear it so this is the payment against that invoice and this is the invoice actually so the payment   and the invoice were already settled  so i will mark it to reverse them and okay now i can go to the settle transactions this  is basically all open transaction which have not   been knocked off with each other so since i'm  making a credit note of the invoice so i need to   settle or knock off this with the previous invoice   uh so this will club both the  invoices so now you can see here that okay now i will make the filter here okay now both invoices this one is credit node  and this one is the actual invoice uh these are   now available here and i can mark both of these  so that both of the effect are now knocked off   with each other and just pause this settlement okay so now you can go to undo settlement and check check by filtering so both of the invoice and the credit note  purchase credit not pcn and purchase the invoice   are now settle and knock off with each other so  there is only one effect is remaining that is a   payment effect and now it depends upon whether  this payment which you have already done to the   vendor so that the vendor basically has already  rendered some other services or items so that   payment can be used to settle those item or even  you can reverse this as a separate payment journal   with the reversal of the same means the credit  to the debit and debit to credit uh and then   post the payment journal it depends upon the  basically business criteria business scenario   whether this payment you want to  use with us to settle some other   invoices from the same vendor so that's it  uh guys and i hope you must have enjoyed it   and this is the total effect which we  have done and in order to verify uh them   that that also can be verified first of all  by going to the product information management okay once you are in the product information  management go to the release products   and in the release product the item which we  have already noted is 1000 and the date is also   noted so we can just pull out the transaction  in the same date and we can see the effect   okay so this is the product available here  and go to the manage inventory go to the   transactions so all the transactions issues or  receipts again this product will be available   and if you have noted the date of the product  received that was december 10 2016 and if you want   to filter it in the physical date you can do so  by putting is exactly physical date is exactly and   this is the basic transaction uh the reversal  is also shown as a sold and purchased it was the   actual transaction and you can see the cost amount  is already reversed and all the effect is totally   reversing the previous transaction and similarly  if you want to see the financial effect financial   effect will be reversed so what we can do is  just note down the date here go to the ledger general ledger and in the ledger in  the voucher transactions you can go okay in the voucher transaction you  can just put the date here and uh that will show you the  vouchers posted in their date   and if it if it is smaller  number so you can easily identify so basically these are you  know pcn and journal numbers this is the exact amount 179 800 this amount is  exactly the same amount and vendor account is   also noted here these are the total uh you  know cash discount has been also reversed   uh for this vendor there was a small cash discount  available and all the transactions are now it available available vendor balance  uh which was uh uh already posted so   all all are with the credit and debit uh so  everything is reversed you can check here and to clearly see whatever the effect was it  is better to make a note before you post it   so otherwise it will be you know little  bit confusing for you there is another idea you can note the voucher number for example  i have noted the voucher here p ib this 539   basically and that voucher can be filtered here so this one is the total effect when  we posted the actual in actual invoice and similarly if i remove the filter so this is the uh the purchase credit node  voucher which was posted so this is basically   the credit note credit note voucher and this one  is the uh purchase invoice voucher and both are   cancelling the effect of each other and there  is a vendor cash discount also taken which is   also reversed and using the same main account  and financial dimension so this is one of the   way you can verify the effect and that's it i  think and also we can make use of vendor report so that we can go to the inquiries and  reports and in the inquiries and reports   you can go to the vendor reports  and fetch the account statement okay so the date is uh basically we'll use the invoice date here in the parameter i will use  from and to date the same date   and the details i will use discount  show all transaction include and for the vendor i need to also   put a filter here filter for the vendor  and just copy the vendor number okay and   this vendor is now selected and i have selected  only one date so that is easy for us to compare so now you can see here that there is  a cash discount voucher here and that   has been also reversed and there is a this  credit note a reversal of your invoice and   this is the purchase invoice so uh the liability  the vendor liability which was the credit amount   of 179 800 was reversed with a debit amount with  this credit note and the dates are also same let me also make it okay discount use is also  mentioned in the same invoice which was also   reversed here so this is the total effect and  it is making a zero amount here because of uh   selecting the same date so it means the total  financial effect was reversed so this is one of   uh one of the way to also verify the same you know  the reversal has been done successfully or not   so we will use another method in order  to reverse an existing purchase order   there is a purchase order number  37 and if i would filter it so this one is a purchase order available which  is already invoiced and product received is   already posted against this and there is a  single line and then there is also invoice   which was posted and with the invoice amount  of this one and i have noted the details here   uh the invoice number is also mentioned here   this one is the invoice number voucher is also  this one amount is 1090 usd us dollars and so this uh this one i want to uh reverse  with another method uh by using another   purchase order instead of the same one so  what i can do just clear this filter and   go ahead with a new purchase order and  use the same vendor account number 1001   so that it defaults everything and purchase type  just make sure this should be purchased order and   that's it and just go ahead with okay okay now you  inside once you are inside purchase order there   are no lines initially you can go to the purchase  fast tab and in the first group create you can see   there is a credit node option available so this is  another way when you create a blank purchase order   with the same in vendor and then use this credit  node functionality so by default invert sign is   yes copy charges is yes copy precisely yes copy  order header is here so everything is yes and   now the original purchase order which we need  to reverse we can just make a filter of this   already it's bottom and i will select this  one this is invoice adder so all the lines   will be selected so in this one only one line  exists so just making it simpler just press ok this will default uh the lines and you can see the  quantity is negative and unit price is mentioned   now net amount will be negative the same amount  1000 and 90. one more thing is important once   you select any of the line in this purchase order  you can go to the product fast tab in line details   in the line details and then item references you  can see the reference type is purchase order and   original purchase order number is mentioned which  we are reversing as a part of credit node and   reference lot number which was the original order  original line and a lot number which is available   in the setup part so this one is the separate  one but if you if you want to see you can go to   the original purchase order line and you can see  this reference load number this is the original   original lot number so this is this is basically  marking that line you can go to the inventory and   go to the marking and in the marking you can see  this uh or this this this one was the original one   and this is already uh you can see a tick  mark so in this way this is very important   of uh when you mark it so it will not disturb  your weighted average cost if the item is   the valuation method is weighted average  cost otherwise that will be not realistic   once you are reversing those transactions should  be excluded so now uh once we go to the header   also this is also accounting date i want  to make use of the same accounting date   okay and once done we can  confirm this purchase order and the remaining process will be the same go to  the receive and in the receive go to the product   receive print product receive and the  number i want to make use of for the same   original number but with the reverse prefix  so that later on it's easy for me to identify   and date also should be the same one i want to  use which is the current date today's date and   that's it i just i can go ahead with ok  and it will post me the product receipt just make sure the quantity is  negative and it is negative now   and just close it and go ahead with  invites as well and repeat the same process okay and in the invoice invoice number you can  just put a prefix and put here invites number   and then the date also i want to make use of the  same date and invoice number is mentioned and   then the line i need to verify where the line net  amount is uh same 1090 and as an additional step   i want to also check the totals here and cash  discount is also getting reversed just close   okay and go ahead with update match status which  will be passed now and then go ahead with posting okay so now it is posted you can additionally   go to the journals and if you want  to preview go to the original preview so this the label of credit node is shown   and the same amount has been reversed so  this is this is another way and remaining   the transaction i have already uh not already  told you how to check it uh going by by going   to the product itself and checking the inventory  transaction and similarly financial effect   by going to the voucher transaction in the  laser part so this is it i think you must have learned a little bit about how to post a credit  note in two ways and there are there can be more   ways but i mean there can be a way that when you  use a return order and in the return order also   you need you can return some of the quantity  back to the vendor or the total quantity can   be reversed and also in these credit notes you  can adjust the quantity as per your needs so   that only a partial credit node is posted and  same effect is reversed so this is uh this is   it for this session and please let me know about  your feedback thank you very much guys take care