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Answered

Purchase order Prepayment vendor invoice reversal

Posted on by 52

Hi,

We have a procurement category for prepayments.

And in inventory posting profile, this prepayment category is mapped in "prepayment tab" and " Purchase expenditure for expense" don't have any mapping.

Prepayment works fine.

We need a reversal for one of the vendor prepayment invoices as the vendor return the prepayment. 

Prepayment is added in PO using the prepayment option.

Prepayment invoice created and posted. Prepayment paid.

How to post the credit note against a prepayment.

In other words, how to reverse a posted and paid prepayment invoice from purchase order.

Regards

Shijith

  • Magno Pereira Profile Picture
    Magno Pereira 2,389 Super User on at
    RE: Purchase order Prepayment vendor invoice reversal

    Shijith - Unfortunately, to the best of my knowledge, that 'Remove Prepayment' option does not provide a means to specify the credit number.

  • Shijith.cxg Profile Picture
    Shijith.cxg 52 on at
    RE: Purchase order Prepayment vendor invoice reversal

    Dear Magno Pereira,

    It works . Thanks for your suggestion. One more question.

    While executing 'Remove prepayment' system generate a journal, anywhere can we specify a credit note number ? It will help to clarify the vendor account statement. Any suggestions are welcome; will accept your solution for sure.

    One more point, in case the prepayment is settled then 'Remove Prepayment' option will be disabled. To make it again active we can undo the settlement.

    Regards,

    Shijith

  • Shijith.cxg Profile Picture
    Shijith.cxg 52 on at
    RE: Purchase order Prepayment vendor invoice reversal

    Dear Magno Pereira,

    Thank you for showing this option. I didn't tried this. Looks very promising. Let me check and i will update this thread and accept the solution.

    Regards

    Shijith

  • Verified answer
    Magno Pereira Profile Picture
    Magno Pereira 2,389 Super User on at
    RE: Purchase order Prepayment vendor invoice reversal

    Once you have unsettled your prepayment with a payment, have you tried using the "remove prepayment" option?

  • Shijith.cxg Profile Picture
    Shijith.cxg 52 on at
    RE: Purchase order Prepayment vendor invoice reversal

    Dear Magno Pereira,

    Payment reversal we completed as you suggested and settled it with the previous prepayment.

    Normal credit note through po will not work here as we need to debit the balance sheet prepayment account. In case if i mapped a procurement category to "Purchase expenditure for expens". Users might use it for prepayment then the open prepayment tracking will not work.

    How to reverse the prepayment balance sheet account using prepayment mapping in posting profile.

    Regards

    Shijith

  • Suggested answer
    Magno Pereira Profile Picture
    Magno Pereira 2,389 Super User on at
    RE: Purchase order Prepayment vendor invoice reversal

    Firstly, begin by initiating a payment reversal and applying the original payment to the reverse entry. Then, proceed to post a negative invoice against the Purchase Order. This negative invoice will offset the amount of the original prepayment invoice on the PO. Finally, select both the negative and positive invoices and settle them against each other. Have you attempted a process similar to this? I'm not sure if you have workflows or change management processes in place..

  • Shijith.cxg Profile Picture
    Shijith.cxg 52 on at
    RE: Purchase order Prepayment vendor invoice reversal

    Dear Magno Pereira,

    Thanks for your reply.

    We need to use the po only prepayment amount was different. Vendor issued credit note.

    Infact any option to reverse the prepayment from po is fine with us. Creating a return order also fine.

    Regards

    Shijith

  • Magno Pereira Profile Picture
    Magno Pereira 2,389 Super User on at
    RE: Purchase order Prepayment vendor invoice reversal

    Regarding the purchase order (PO), are you considering whether to proceed with the PO or cancel it?

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