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  13. Enter a debit note...

Enter a debit note for a disputed payment

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The following scenario is a simple example of the use of a credit note: An invoice has been sent to your debtor. The debtor disputes this invoice because of, e.g. damaged goods, and will only pay half the amount.

An A/R debit note is a specially composed A/R redefinition document, that allows you to redefine all the original invoice parameters. This means that you can redefine a whole or a part of a document’s open amount into another document of invoice document type (Document type 1). Note: The term “redefinition document” here is not the standard DC1 redefinition document (Document type 5).

The debit note is another type of redefinition document, that redefines an amount into another invoice. The debit note functionality gives you:

  • Full control over the invoice information associated with the composed redefinition document, for example, terms of payment, document and due date, exchange rate, VAT amounts, contra accountings, etc. (The composed redefinition document created is a normal invoice of document type 1.)
  • Possibility to enter multiple composed redefinition documents of the same type, related to the same settlement at the same level (settlement or item level).
  • Possibility of cross-debtor redefinition.
  • Text notes available for each newly created composed redefinition document.

Common features for the debit note and the Difference redefinitions are:

  • The document entry panel can be easily accessed from the settlement panel.
  • A link between the original document and the composed redefinition documents is kept in the system.
  • The redefinition differences can be created on both the settlement and the item level.

Prerequisites
Each functional debit note consists of two documents that must be created in the system:

  • The actual Debit note, document type DNT, being an arbitrary invoice-type document (Data type 1).
  • An associated Debit note difference, that settles the redefined amount from the original document. This difference document (Data type 3), which is created in the system automatically, has a document type defined for the DNC system document type in Work with system document types.

Here, the item related debit note will be used, which refers to a particular document with an open amount that is being redefined. There also exists a settlement related debit note, which does not refer to a particular document, but rather redefines a part of a settlement amount, common for all documents settled in the settlement.

  1. Follow steps 1-4 in Enter an A/R payment with a pre-defined contra account with the following exception in step 4:
    2. Transaction amount
    Enter only part of the original invoice as a payment.

    Click Settlement.

  2. You access the A/R settlement workbench showing the payment document, Settled amount, and the original invoice, Remaining amount. Select the invoice and click Deb note. Note: You can also select the invoice and click Change. You remain on the same panel, but with additional settlement fields at the bottom part of the panel, open for maintenance. Then, you can click Deb note from here.
  3. You access A/R debit note entry. Some of the fields on this panel are defaulted from the original invoice, e.g. Currency/Itm. ex. rate. Other fields are open for input, so that you may change information entered on the original invoice. The following fields are relevant:
    4. Document type
    This field will be defaulted with the document type applicable for the A/R debit note entry.
    Customer number
    Enter the customer number. Other fields will be defaulted as defined for the customer.
    Transaction amount
    The amount in this field is the remaining amount of the invoice, defaulted from the previous panel, but can be changed.

    Click OK.

  4. You access G/L postings entry for A/R documents where you enter your accountings. Click OK.
  5. You access Document related debit notes with the entered debit note. Click OK.
  6. You return to the A/R settlement workbench. The system has now created a difference document, A/R debit note difference, for the original invoice and the A/R debit note is still open for maintenance. It can be saved in the system for, e.g. awaiting the remaining payment. Click Update. Exit the routine.

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