Wrong subtotal on Posted Sales Invoice when a Deposit had been applied

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Posted on by Sonia Turcot

Wrong subtotal on Posted Sales Invoice when a Deposit had been applied

I wonder why customers who use Microsoft Dynamics Business Central (BC in the rest of the text) accept Microsoft's way of handling customer deposits and deposits paid to suppliers.
On an invoice, usually, there is a detail section which specifies the list of items sold (quantity, sales price, etc.) and there is a total section in which we find: the total of items sold, the taxes and the total invoice including taxes. Then, we specify what has been paid and/or what remains to be paid. We agree to say that the sale will be the total of items sold before taxes.
I realize that with BC, this is not the case when using Prepayment Invoice. BC applies Deposit paid (and deducted it) from the Sales Invoice.

I use Microsoft Dynamics Business Central on the cloud
This Version :

I will explain the steps we follow with BC for a normal transaction.

First we enter a Sales Order for the customer.
1. In my example, this is an item that will be sold for $2,025 plus taxes = 2,328.25$.
We will issue a Prepayment invoice which is equivalent to 50% of the total including taxes of the Sales Order, i.e. 1,164.13$.
We will enter a Cash Receipt to pay this Prepayment Invoice.
When the customer comes to pick up their merchandise, we must issue an invoice for the item sold for $2,025 + taxes, i.e. $2,328.25. On the invoice, the deposit already paid by the customer of $1,164.13 should reduce the total payable of the invoice.
Customer will pick-up the stock, the invoice and will pay the balance of it i.e. 1,164.12$

Step 1 : The Sales Order. : All good.

Step 2 : Prepayment Invoice : All good.

F7 for “Sales” Invoice Statistics

Step 3 Cash receipt : all good.

Step 4 : not good. The amount of the Sales aren’t right because he deducted the Deposit (Prepayment invoice paid at Step3!)

F7 for Sales Invoice Statistics

Firstly there is the problem of having a good subtotal of the merchandise sold on the invoice. We had to modify our invoice form so that BC did not include the lines with general ledger account #21210 for customer deposits.
Already, I'm wondering why I would have to pay to have a good subtotal on a sales invoice as BC should give me a right amount on the invoice.

My concern grows when I realize that the Posted Sales Invoices screen does not show the correct subtotal. So, if I want to export this data into Excel to do some checking or other analysis, the column Amount and Amount including tax are not right because of the Deposit deducted from it.

If I look at the report Customer Sales Statistics, well all numbers of Sales are wrong because BC takes the Deposit as a Sale (in minus) but it’s not a Sale….

And so on for other screens or reports. Still the same problem, the deposit should not reduce the amount of the invoice but should reduce the amount remaining to be paid on the invoice only...

Thank for your help in advance or comments!

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Sonia Turcot 35 on at

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Wrong subtotal on Posted Sales Invoice when a Deposit had been applied

Hello,

Thank you for your comments and clarifications although I do not agree with everything. I disagree that this is not a problem because even though Business Central treats it from their system point of view as a sale, this is not a sale. and according to accounting standards a deposit is not income so even if I wanted to adjust according to his system point of view, I cannot. Also when I make the final invoice (the second 50%) the total items delivered do not appear on the screen (it is reduced by the amount of the prepayment applied) and is not good in the sales reports if I do not not personalize. Of course, I can have my invoice form personalized, which we had no choice but to add, the reports and the screen views are not consistent from an accounting point of view. The displayed subtotal is not correct. Each time you request customization of a report or something else, this inevitably complicates things. I deplore and I'm surprise that Microsoft has decided to redefine the notion of subtotal of a sales invoice and that customers and consultants accept this.

Thanks!
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KasparsSemjonovs 3,660 Super User 2024 Season 2 on at

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Wrong subtotal on Posted Sales Invoice when a Deposit had been applied

You would need customize the process or just the reports.

From system point of view -the prepayment is also Sales.
When You post the final invoice, of the remaining 50%, it will show the Total amount of items bought, and another line of Prepayment Paid, and the total of Invoice will be correct.

So basically at the end it seems as You have 2 separate Sales Invoices - yes they are linked together to Order, and one of them has the prepayment indicator, but at the end - both are treated as Sales.

Wrong subtotal on Posted Sales Invoice when a Deposit had been applied

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Wrong subtotal on Posted Sales Invoice when a Deposit had been applied

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