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Clearing Open Payables Invoices

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Posted on by Community Member

Hi:

A set of posted purchase invoices was imported, and the end user wants these open payables "cleared".

I know that you can choose "Create Corrected Credit Memo". But, I believe her need is to "clear" these open payables documents without impacting her accounting. This is because she says that these documents will never be paid.

Is the correct course of action to instead choose "Correct" for each invoice, so that that invoice is cancelled and afterward delete the newly created purchase invoice?

Or, is there perhaps someway in the Payment Journal to essentially debit and credit the same account for the payment so that the result is a "wash" in the G/L?

Finally, I see in "Purchases & Payables Setup" that there is the "Allow Document Deletion Before" selection. Would this help?

I'd prefer not deleting anything from the database. And, I don't think that the end user wants to import credit memos to in essence clear these open payables.

Thanks!

John

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Community Member on at

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RE: Clearing Open Payables Invoices

Hi Josh:

I found the problem, after speaking with the end user. A currency issue was preventing applying the credit memos. Once I changed this in Purchases & Payables Setup to "All" for the Application setting, she was then able to apply.

Now, we did notice that applying a credit memo can only be done one invoice at a time. Why is that?

John
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AlessandraPanda on at

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RE: Clearing Open Payables Invoices

Hello,

this is a choice tha have to be done internally because the normal way to proceed is issuing a credit meno to reverse (correct) the posted purchase invoice transactions otherwise if you just compensate debit and credit of ieach invoice from the fiscal and accounting point of view you are deducting costs and VAT that you haven't concretely had. but I think also that you have to check what is needed as final result with your customer.

As regards yor question " I see in "Purchases & Payables Setup" that there is the "Allow Document Deletion Before" selection. ", This tool is used to cancel the posted document only and not the related General and Vendor ledger entries.

thanks and kind regards

Alessandra
JAngle 89 on at

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RE: Clearing Open Payables Invoices

When the user states will “never be paid” do they mean to write off the balances? The credit memo based steps you have described would just reverse the invoices as if they were mistakenly entered.

Need to determine the desired outcome for sure before suggesting further.