Reverse the customer advance in the project module.

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Posted on by imran ul haq

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Hi All,

How can i reverse the "Customer advance" from the project, as i know i can create the line with the negative amount and invoice but i want to reverse it with the proper "transaction origin" which is "Prepayment journal voucher" not by "Milestone".

Even i tries with reversing from the customer master but getting the error message "The ledger transaction type Project - WIP invoiced - on account for account 2112021 cannot be reversed".

I tried from the project "Invoice journal", function - Credit note getting the error message "No transaction exists that can be selected for credit note."

Please guide, thanks in advance.

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Ludwig Reinhard Microsoft Employee on at

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Hi Imran Ul Haq,

So you created a prepayment in the on-account form and invoiced it to your customer. Is that right?

What is the project type for which you created the prepayment?

Best regards,

Ludwig

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imran ul haq 4,017 on at

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Hi Ludwig,

Yes, i enter the customer advance from the customer advance form (Under manage tab, bill group, customer advance), which will automatically reflect in the "On account transactions form" with the transaction origin as "Prepayment journal voucher".

We are using fixed price percentage completion type of project.

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Ludwig Reinhard Microsoft Employee on at

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Hi Imran,

The 'trick' is to enter those prepayments at the project contract level.

Please open your project contract, open the on account form and enter a negative prepayment transaction type, which cannot be selected from the project level.

Once this is done you can leave the Project contract and open the on-account form of your project and you'll see the negative prepayment that can be corrected/invoiced/...

Best regards,

Ludwig

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imran ul haq 4,017 on at

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Hi Ludwig,

Really great, appreciated...

Just one question, when we enter the first prepayment (Customer advance), system will generate two lines one with the "Prepayment journal voucher" with "invoice status" fully invoiced and other line with the "Deduction " with "Chargeable" status. Now when i put the reversal for this wrong prepayment, and generate the invoice proposal, at the bottom in customer advance reconciliation this deduction amount is coming. So i believe this we have to delete from the "On Account transaction " form and then invoice the negative amount, and that "deduction" will no more in the system.

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Ludwig Reinhard Microsoft Employee on at

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Hi Imran,

That's another speciality that you found :-)

If you see a deduction line in the on-account form for a fixed price project, you must have selected the 'customer advance' button at the project level, which creates a prepayment and a deduction line.

In our case here you need to delete the deduction line because otherwise you'll deduct the amount one time too much.

Best regards,

Ludwig

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Ludwig Reinhard Microsoft Employee on at

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Hi Imran Ul Haq,

Is there anything else open here or can we get this thread verified and closed?

Best regards,

Ludwig

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Community Member on at

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Hi Ludwig, I was actually looking for the same functionality and was happy to find your appreciated answer here. Inspired from what I found here I gave it a try and just created a new invoice proposal without entering a negative line amount on the contract. I was able to proceed without problem and could just create a credit note for the reverse amount of the advance payment invoice. Vouchers are looking okay for me (just reversing the invoice posting).

Any thoughts to this? Can you verify that this also meets the requirement of crediting a customer advance?

BR

Martin

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JasmineC 65 on at

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This is so helpful! We ran into the exact same issue and ran out of ideas. This trick works just magically! Thanks a lot to share the solution!

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Naseerjn 75 on at

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Dear Ludwig, your time and support are much appreciated.

We have faced the same scenario and followed the above-mentioned steps to reverse the Project advance invoice.

But we noticed that posting are not as expected.

when the actual invoice is booked the below entries are captured, but please note the Reversal entries.

Please advise on this.

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