Credit note

[Former Member]

Dear All,

I am working on scenario. For example my client is billing for 10 quantity, accounting document is also created. After that customer only pays for only 6 qty. In that case my client will issue credit note for 4 qty. After that when customer approves remaining 4 qty, that time client will issue billing document.

Please guide me how to map this scenario.

Kaushal

[former_member184555]

Hi Kaushal,

Your requirement is not clear.

Looks like that, the concept of CONSIGNMENT best suits your requirement.

Thanks,

Ravi

[Former Member]

hi,

as i understood, if you are billing for 10 Qty then i assume the stocks are already PGI'd and the customer has received them.

Now customer pays for ony 6 qty, this is at the time incoming payments. As per this, why should you again raise a credit memo, because the stocks are there with the custome. so if he is going to return them, then only you issue the credit memo. Otherwise how does it tally for accouting. customer would be holding stocks and also credit memo for it.

However it looks better to do a consignment for this scenario, because the customer can pay for what he consumes periodically. Let the customer take 10 qty, assuming he wants 6 then do a consignment issue and bill. Later do the issue for the remaining 4 when customer approves and bill.

pl clarify if this suits your requirement.

regards

sadhu kishore

[Former Member]

Hi,

See if you could try Milestone billing for this scenario.

Create a billing doc for the total 10 qty with 2 phases ,so the e customer can pay in 2 phases.

Customer will pay only for the first milestone for 6 qty at a earlier date ,and will pay for the balance 4 after a approval

at a later date.

Here no need for issuing a credit note for 4 qty or an another invoice too.

Reward points if helpfull.

Thanks,

Umesh Karane.

[Former Member]

hello, kaushal.

pardon me, but i need to understand your business scenario a little more.

your client already billed the customer for quantity 10 units. the customer pays your client for 6 units. your client should then issue the customer a credit memo for 4 units, right? are the 4 units being returned to your client? why and what will the client be billing the customer again?

regards.

[Former Member]

HI Jonathan,

Thanks for taking intrest in my issue. After issueing invoice for 10, customer will approve only 6 qty. For remaining 4 qty they will issue credit note.The remaining 4 qty will remain at clinent location. For further to your clarification I have customized billing plan to issue milestone wise and qty wise billing document.

My issue is If i raise credit note for 4 qty, after I can not re-bill that 4 qty again to that client.

Kaushal

[Former Member]

hello again.

hhmmm. quite an interesting setup.

you are right. after the initial billing of 10 units, the transaction is already completed. the issuance of credit memo (does this result from a credit memo request?) will be completed in itself.

if you wish to bill the customer again for the 4 units, you cannot do regular sales invoice because there will be no trigger. instead, you should be doing debit memo request for 4 units, resulting in a debit memo to your customer. i think this should be more proper.

of course, there are other ways of mapping your requirement. if you are open to other ideas, i think the proposal of the others to use consignment is a sound one and you can keep the integrity of your transaction flow intact.

regards!