Credit Notes to Customers - Reversing Issues
Credit Notes to Customers - Reversing Issues
Credit Notes to Customers - Reversing Issues |
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If you valued goods using the LIFO method and have reversed an issued to a
supplier after other transactions have taken place between the original issue
and the reversal of the issue, you must take the following precautions:
If you are
creating a credit note with the same document type you used for the issue...
Document types for issues have Fill Price from Current Warehouse
selected as the method for filling in the purchase price, which simply means
that the program will find the latest valid valuation price. So the credit
note or reversal of the issue will not be valued with the same price as the
original issue.
Even though you'll be using the function for adding movement and will select
the Change Sign option (described below), this information will be correct when
you create the document, but will be changed to the latest valid valuation price
once movements have been recalculated. The warehouse card following the
recalculation:
That's why you'll
create a credit note using the document type for credit notes...
You can avoid the problem shown above by creating a separate document type
for credit notes and using it only for adding movements with the Change Sign
option.
1. Document Type
Select the Price Input option in the Fill Purchase Price box. Simply put,
this means that you'll enter the valuation price when creating the document, and
that it will not change once you recalculate movements. For examples of this
document type, see Credit Notes.
2. Adding a Movement - Change Sign
In a document type created for this purpose, click the Add
button to open the window for adding movements.
Select only the issue invoice that the credit note pertains to (see
Selecting a Movement). You must select the Change Sign option.
Usually, all lines of an issue document are not reversed in their entire
value. In the Lines to Transfer panel, you can
also change the quantity for the reversal before adding. In this example, 10
pieces will be reversed (returned to stock). Enter this in the Quantity column
as a POSITIVE value:
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This procedure will exactly COPY all information from the
original document, including the valuation price. If the information in the
original document is correct, the reversal will also be correct. |
Refreshing stock will not change a document of this kind because of the
settings you've entered in the Document Types register (Price Input). The
warehouse card for this example will now be correct, and the value of the
reversed lines will be available for further issues.
