Applying credit note to invoice

ERPNext
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1

Say,

  • Customer ‘X’ has returned items worth $1000 against Sale Invoice No. INV-001. We have created a Credit Note against the invoice.
  • Now the customer has again purchased few items from us worth $1800. We have created a new sale invoice INV-002.
  • But the customer has paid us $800 only and asked to apply the $1000 credit note to that invoice so that the outstanding amount becomes zero.

How to apply the credit note amount to a sale invoice? I didn’t find any direct way to do that.

Please help!

2
  1. First, create a Credit Note against an Invoice
  2. Then create a Payment Entry for the return amount
  3. Use payment reconciliation to knock off Payment against the original Sales Invoice
3

@Suresh_Thakor
I am in the same situation. Cna you [please elaborate on steps 2 and 3?

I mad ea credit note. DOne.
You say make a payment entry. But, what is the source of the payment? It is not a bank account, it is the credit note. How do I use it?

You speak about payment reconciliation, not sure what this is.

Thanks for any guidance.

4
  1. You created sales invoice($1000) and received payment($1000) against. Customer balance is zero.
  2. Again you created Credit Note (eg. $400) agaist sales invoice thus customer balance is credit ($400).
  3. You created sales invoice again ($1800). Now the customer balance is ($1400) in ledger but invoice shows $1800.
  4. You should select payment entry (either directly from invoice or new payment entry) and enter amount then select outstanding invoices the balance would be of ledger ($1400) there, not ($1800), as you have posted credit note already.
5

suresh Thakor is also right…but that is a little bit complex matter… moreover we in reality are not returning back any amount to customer against credit note… It’s just for payment reconcilliation purpose. So choose simplified way as discussed above

6

I executed this same scenario. It worked well. I had to allocate the credit note to second invoice to make it to PAID status and the customer ledger becomes zero.

I have a different scenario.

I am on v15

  1. Raised Invoice-1 for $1000
  2. Added payment entry against Invoice-1 for $1000
  3. Invoice Outstanding and Customer ledger becomes zero
  4. Now i raise a Credit note against Invoice-1 for $400

The credit note doesnt get allocated to the Invoice, it doesnt make the invoice as negative outstanding.
I raised this credit note from within he invoice. Still it doesnt get allocated.
Then i tried payment reconciliation tool to knock of the credit note against the invoice.
The tool says there is no outstanding invoice for this customer
Then i tried to make an outward payment against the invoice to make it negative outstanding.
System doesn’t allow that as well, it says there should be an existing negative outstanding invoice to make an outward payment

Note: this scenario used to work on v13.

Any idea? Am i missing anything?

7

Can anybody help on this?

8

Any help on this?