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Prepayment Posted Sales invoice leaves remaining amount after issuing credit memo for prepayment

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Posted on by Srikanth R

I posted a sales invoice from a sales order using the prepayment method with prepayment treated as deferred revenue. Later I came to know that the order was a duplicate order. I used prepayment sales credit memo from the sales order to negate the invoice amount due. I ran a preview of the posting and the GL entries looked right (Credit AR and Debit Deferred Payment). Customer leger reflects the negation but the posted sales invoice shows a remaining amount that is same as the original prepayment invoice amount. How to fix this?

Any help in this regard will be greatly appreciated.

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Dynamics 365 Business Central

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Srikanth,

I want to make sure I follow you. You have a Posted Sales Invoice for the Prepayment, which shows as a Balance on the Customer Card. If the Sales Order is still open and the Posted Sales Invoice for the Prepayment, unpaid, you can post a Prepayment Credit Memo reversing this document.

Now your last sentence confuses me since you say the Posted Sales Invoice shows a remaining amount but how can this be if the Prepayment Posted Sales Invoice you reversed off the original Sales Order. You should not have a Posted Sales Invoice.

If you can send pic of what you posted and what is open it will help.

Thanks,

Steve

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Srikanth R 5 on at

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Steve,

Thank you for reaching out. The sales order number from which I created the prepayment invoice is 101429. The prepayment invoice number is 103477.

I have attached 2 screen shots

Customer ledger entries- This shows that the credit memo negated the prepayment invoice.

Posted sales invoice list for customer- This shows that the prepayment related posted sales invoice 103477 is not cancelled, closed or corrected and still has a remaining balance.

Customer Aging summary- This shows that the AR is good. The credit memo negated the invoice amount from the prepayment invoice.

Thanking you in anticipation.

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Dallefeld 211 User Group Leader on at

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Srikanth, sorry I can't open your images.

The prepayment credit memo is not necessarily designed to offset the prepayment invoice. This is because the prepayment invoice could have been paid and if the order would need to be cancelled, the system provides the ability to issue credit anyway.

You can apply the prepayment credit memo to the prepayment invoice, if both are unpaid, in the customer ledger. You can do this directly in the customer ledger using Apply Entries

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Srikanth,

As Kim replied... I cannot open the attachments too. Kim notated why the Prepayment Credit Memo might not have offset the Posted Prepayment Invoice. If you can reply and Use Rich Formatting, you can copy and paste the image into the reply.

Thanks,

Steve

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Srikanth R 5 on at

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Srikanth R 5 on at

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Thank you for providing the logic behind what I see. I applied entries on the invoice and credit memo but the status on posted sales invoices still has remaining balance.

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Srikanth R 5 on at

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Please ignore my previous posting. After verifying the applied entries, I found that I had wrongly applied. Once I unapplied them and reapplied them properly, the remaining balance on posted sales invoices list turned to 0. Than you very much for walking me through this.

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