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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / TREATMENT OF RETURN OF...
Microsoft Dynamics GP (Archived)

TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

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Posted on by zulfi721 6,825

i have received an advance payment of USD 1000/- from a customer.

 upon receiving i entered the cash receipt voucher

distribution would be like this

DEBIT:BANK A/C

CREDIT:ACCOUNT RECEIVABLE

and along with this customer's subsidiary account is credited with an advance payment of USD 1,000/-

Now at a later date customer cancelled the order and i have to return the received advance.

How can i  enter this return of advance to customer in dynamics GP-2013

NOTE: i don't have any sale invoice for this customer neither any prospect of future sale to adjust this advance received

*This post is locked for comments

  • Suggested answer
    soma Profile Picture
    soma 24,406 on at
    RE: TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

    Normally I wont recommend to void the deposited receipts (Its my suggestions).

    Hope this helps!!!

  • Suggested answer
    babubaskaran@outlook.com Profile Picture
    babubaskaran@outloo... on at
    RE: TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

    Zulfi,

    Long time no questions you might be mastered in GP now :-). Just o add valuable suggestion made by Soma.    You have two options.

    1) Doing the above as per you mentioned.

    2) If you have booked the cash receipt already - you might void the posted transactions and issue a refund check to the customer.

  • Suggested answer
    soma Profile Picture
    soma 24,406 on at
    RE: TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

    To return the payment amount for posted cash receipts, follow above my suggestion (create a debit memo/finance charges and bank transactions).

    Hope this helps!!!

  • Suggested answer
    soma Profile Picture
    soma 24,406 on at
    RE: TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

    Yes. This is the way most of the users using for non-customer/customer payments. You can also follow the same by for your future payments.

    But, above my suggestions are related to cash receipts and customer balances.

    Note: Entering any transaction in bank module won't affect anything on master records such as customer, vendor balances.

    Hope this helps!!!

  • zulfi721 Profile Picture
    zulfi721 6,825 on at
    RE: TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

    The above is also effective when some body has sent some excess payment in our account and that customer has no prospect to buy from us in future....

  • zulfi721 Profile Picture
    zulfi721 6,825 on at
    RE: TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

    What about this treatment.

    Transaction>Financial>Bank Transaction

    IST WE ENTER RECEIPT OF ADVANCE PAYMENT

    Debit:Bank Account  ******

    Credit:Miscellaneous Income ******

    (upon receipt of advance)

    -----------------------------------------------------------------

    2nd

    Debit:Miscellaneous Income ******

    Credit: Bank Account                          ******

    (upon return of advance payment)

    --------------------------------------------------------------------

  • Suggested answer
    soma Profile Picture
    soma 24,406 on at
    RE: TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

    Otherwise, create a Receivable Transactions with type of Finance Charges (Debit AR and Credit offset account) and apply to cash receipt then create a bank transaction to debit the offset account used for finance charges and credit the bank accounts.

    Hope this helps!!!

  • Suggested answer
    soma Profile Picture
    soma 24,406 on at
    RE: TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

    Zulfi,

    This is default distribution for debit notes in GP. Normally we are suggest to use Misc income A/c for debit notes. If this is a return then you can use any other offset accounts.

    Normally we are suggesting the below process for clients for returning the customer payments.

    After made this debit notes, you need to create one more transactions in bank transactions for crediting your bank and debit this offset accounts.

    Hope this helps!!!

  • zulfi721 Profile Picture
    zulfi721 6,825 on at
    RE: TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

    Thx for the default distribution of debit note.....

    But it is not  income.........i am just returning the advance payment..

    The above distribution was referred for sales default distribution not for debit notes distribution.

    Also as this payment has been returned through bank

    how i will tackle this situation in dynamics....

  • Suggested answer
    soma Profile Picture
    soma 24,406 on at
    RE: TREATMENT OF RETURN OF ADVANCE PAYMENT FROM A CUSTOMER

    Here is the default distribution for debit notes.

    Distributin will be like this....

    Debit::A/c receivable  

    Credit: Misc income A/c or Offeset/Contorl Account   (not sales accounts.)

    Debit note transaction you need to use one misc income account like an offset/control account. It will help us to identify how much we have returned or earned from customers.

    Hope this helps!!!

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