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Reportvoiding credit memo after being applied to the invoice. will this affect any payment transaction values?
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voiding credit memo after being applied to the invoice. will this affect any payment transaction values?
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scenario:
Credit memo is applied to the Invoice, then the Invoice is applied to the payable transaction. Total 3 transactions.
In my case the Invoice can be voided, after the payable transaction has been voided only. So, how come the credit memo be voided before the payable transaction is voided?
Hi Kekuri,
No need to void the payment transaction in order to void the credit memo. You can just void the credit memo alone.
Assume the below scenario,
Invoice amount - $100.00
Credit Memo - $50.00
Payment - $50.00
Now, unapplied amount for this invoice = $0.00
After voiding the credit memo alone,
Invoice unapplied amount - $50.00
and the GL will be reversed accordingly.
Please let me know for any clarification
Just to be clear;
- the credit memo is applied to the invoice transaction [this is historical transaction voiding level]
- then the invoice is applied to the payment transaction [this is open transaction voiding level]
if the above mentioned statements are true, the question is:
in order to void a credit memo, does the payment transaction has to be voided. If it has to be voided then there won't be any issues, But if not, isn't is going to be a risk?
Hi Kekuri,
There will no risk factor. Your applied invoice will become open. and there will be reverse entry created in GL to match the accounts.
Thanks,
Mani
The answer to this can be wholly determined by which module you are talking about. Sales or Purchasing?
However, in general, in Payables, if you Void the Credit Memo it Debits the Original Credit and vice versa on the CREDIT MEMO ONLY, but puts the invoice it was applied to back in open. It does not affect coding on the Invoice, just changes it's status. There are a few caveats and gotchas involved in this process such as the Credit Memo has to be fully applied to be voided, etc.
I the sales module it works the same, only the credit memo gets voided, but the documents (crm and inv) both have to be in an "OPEN" state to even attempt the void.
Credit Memo's are not Cash Payments and so "Payment" transaction values is a little confusing.
It will put the original invoices back out there to be paid again, or applied to a new credit memo so payables and receivables will increase once it is voided.
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