Advance payment methodology

ERPNext Accounting
1

I am a tech guy and not an accountant, so please excuse my ignorance on correct procedures etc from an accounting perspective.
Our normal process is…

  1. Send P/O (PO-)
  2. Receive Proforma Invoice
  3. Pay against that (in full) (PE-)
  4. Receive Stock (PREC-)
  5. Receive Tax Invoice (PINV-)

In almost all cases, this works fine, but now I have one that doesn’t fit in nicely, so I need a pointer on how to do this correctly (please)

We received less stock than we paid for…
I created PO- (5kg ordered), PE- (for 5kg), PREC- (4kg rcvd), PINV- (for 4kg). I then tried to allocate the PE- to the PINV-, and got “amount cannot be greater than xxx”

In effect, we will just have a credit with the supplier, but I don’t know how to get it in to the system in such a way that I can see/track it. What would be the correct/recommended method?

Thanks

1 Like
2

Check the following link

3

Thank you.
I have the “Is paid” option, but not the “Is Return” checkbox. Is there a setting I need to adjust?

4

Hi again.
Though the exact option in the link is not showing on my system [ERPNext: v10.1.40 (master);Frappe Framework: v10.1.37 (master)], ie. “Is Return” doesn’t show.

However, if I do the following:

  • PO- : create & submit (for 5kg)
    • on the PO- screen; (using the “Make” button), create&submit a “Payment” for the full amount against ref=PO-. {I then have a PE-}
  • return to the PO- screen; (using the “Make” button), create&submit a “Receipt” for the full amount (5kg) against ref=PO- [ie. as if I had received it all]
    • from the PREC- screen; (using the “Make” button), create&submit a “Invoice” for the full amount (5kg) [against ref=PREC-]. Draw in the ADVANCE-PAYMENT from the {PE- above}
      • from the PINV- screen; (using the “Make” button), create&submit a “Return/Debit Note” for the missing amount (1kg) [against ref=PREC-]. System prompts to “clear payment table”
  • PO- now shows as “complete”
    • G/L (partyType:supplier, party:ThisSupplier, groupByVoucher) seems to have correct values in correct places.
  1. Is this a valid sequence, or do I need to change it…?
  2. How can I utilise the credit as a payment method against other/future invoices etc

Thanks