Accounting Module- refund of Excess Payment

I have a Scenario that

  1. Mr X company has made the Payment as an Advance to Mr. Y (Supplier) against the Purchase of the Goods for Rs 15000 Bill No.102
  2. Mr. X receives the Invoice to the Billing of Rs 13000 only.
  3. Mr X has paid the Excess amount of Rs 2000, which Mr Y refunds the amount of Rs 2000, Now when X records the Entry through Payment and selecting the Payment Type as Received, he is getting an Error as “Cannot Receive from Supplier without any negative outstanding invoice”
  4. Even If we record the JV and do the Receipt Entry, but the same is not getting knocked off against that Bill No. 102 and its Accounts Payable Summary does not give the correct picture.

How the above problem can get resolve? How X will record the excess payment (Refund by Y) in to his Bank A/c
Kindly requesting you to reply it urgent as Client is not able to account that entry.

1 Like

I have the same problem. did you find a solution?

No Still Not got any solutions.

I think this can be solved by the Journal Entry. Once JV is created then you need to do Payment reconciliation

You already paid an advance account to the supplier. But only partially billed. Now you can create a debit note against the supplier as he owes you the money and receive the money against the debit note. It will be stand alone debit note.


But then that Debit Note as per the GST Rules, then the counterparty has to issue the credit Note

1 Like

I don’t know whether there is any how debit note can be raised as stand alone in ERPNext. Mainly use in ERPNext to return goods to supplier. If it can stand alone it would solve the present problem under this discuss. A pointer is needed for using it as standalone.

Yes. You can create stand alone credit note in ERPNext. Item will be a non inventory item. You can use another series for this transaction.

I have to check with the audit team regarding the GST effects.

@Saumyaseelan_Pv Maybe i have not understood you well.Sincerely if you are doing credit or debit note in ERPNext ,you must do it from the invoice concerned which in the current discuss will not solve the problem because the supplier is to return money to the Company X as result of overpayment of X to Y.But if you say standlone debit or credit note should be created,it means that a new purchase invoice must be raised using the service item you mentioned(remember Y is a supplier and not a customer so sales invoice cannot be raised for the money to be received which what i think you are saying which even though if it works will create another problem ).So how will the excess money be received in this case. So i don’t the solution you are proffering will work in ERPNext except maybe i am missing something.Thanks

You can receive the money against a debit note as the debit note is showing the negative amount.

See my detailed explanation.You cannot create debit note from the purchase invoice without the item being negative.If you choose to create a new purchase invoice using the supposedly new service item against the supplier,which called debit note,it compound s the issue.However thanks for your effort but the problem remains

There are two aspects to this problem.
If you have made a purchase receipt then you can use Return/ Debit Note should work without problems

in case you have not made a receipt then, you can create a Return/Debit Note(from Invoice A) and make the quantity as Zero for the item and edit the rate to amount you wanted to receive. Now you can save and submit.

Then from Invoice A you make a payment entry. This time the payment type will be automatically be “Receive” Instead of “Pay”.

Ignore the warning while submitting the payment entry and now you should have Invoice A outstanding as 0