Hi everyone. Hope all of you and your families are doing well in this pandemic.
I had a question regarding the write off amount. In our company, there can be a situation where the product is delivered late and the customer can charge us for liquidated damages for late delivery.
For example, say I have raised a sales invoice for Rs. 1000 to the Customer A. Now since the product was delivered late, the customer decides to charge us Rs. 100 for late delivery, bringing the effective amount to Rs. 900.
Now, when we receive the payment of Rs. 900, while passing the payment entry, I do the following:
- Create payment entry with total allocated amount of Rs. 1000.
- In the unallocated amount, I type an amount of Rs. 100.
- In the Deductions/Loss Table, it shows this as Write OFF and cost center as Main, with the amount as Rs. 100.
Now upon submitting the above payment entry, the invoice is now shown as paid. But when I go to the customer page for Customer A, it still shows unpaid amount as Rs. -100. Why is that happening? I have taken that difference in the write off account, and bearing the loss for late delivery.
Can anyone explain what is the correct solution for this? The end goal should be that the invoice should show as paid, and the customer unpaid balance should be 0.