1. On July 1st, 2007 you issue an invoice in the amount of €1,740.74 to the customer. Its due date is in 30 days, that is, on April 29th, 2008.

2. The customer is not willing to pay the due amount of €740.74 on the grounds of a complaint that was given in an informal way. On the due date of the invoice they pay due amount of €1,000.

3. The customer supplies the required complaint record (complaint record containing relevant information) after the due date of the invoice on April 25th, 2008. The same day you issue a credit note in the amount of €200 that is due on the same day. A somewhat late solution of the complaint was caused due to customer's fault which was not in accordance with the generally determined sales conditions. By agreement you are entitled to default interest because of late payment.

4. Receivable from the credit note and the remaining payable of the invoice received can be closed on the current date. That is, on the day you issue credit note, April 29th, 2007. Credit note issued on the grounds of this basic operation is also closed on this date. Use journal entry period for value date.

5. Select your customer for subject in Close outstanding items by reposting window. The original account receivable will be used for the account for reposting.

Click Close to create a journal entry.

Credit note and invoice are thus closed. The customer receivable is closed for the amount of the credit note by using posting date for due date of payment.

Comparing Methods Used When Closing Manually

Let us take a look at what is achieved when reposting in the window for closing outstanding items manually.

Closing manually does not mean reposting but only changes the reference to the linked document. That is why you get the following posts for the invoice and credit note in question:

You can see that due date remained the same for the credit note. Thus the issued invoice is partially closed on the due date of credit note.