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jenni's avatar
jenni
Experienced Cover User
3 years ago
Solved

How to apply a credit to the related invoice dated in a previous month

Hi,

 

I am wanting to know what date I should enter when applying a credit (dated 15.7.2021) to it's related invoice (dated 25.6.2021).   

 

I am trying to do a Payables Reconciliation for June but understand that the out of balance amount is the credit amount from July, applied to the June invoice.  I have entered the apply to purchase date as 25.6.2021.

 

My Question - what date do I enter when applying credit to purchase?

Is it the date of the credit or the date of the invoice or something else?

 

Thanks!

Jenni

  • Tracey_H's avatar
    Tracey_H
    3 years ago

    Hi jenni 

     

    Thanks for your post. Generally when you record the credit (supplier debit) you would enter the date as the date the credit was issued, eg 15/07/2021. Then when applying the credit to an outstanding invoice the date would be the credit issue date, eg 15/07/2021. That way the software reflects what happened in real life, with the credit being applied when it was issued not before it was issued.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    3 years ago

    Hi jenni 

     

    Thanks for your post. Generally when you record the credit (supplier debit) you would enter the date as the date the credit was issued, eg 15/07/2021. Then when applying the credit to an outstanding invoice the date would be the credit issue date, eg 15/07/2021. That way the software reflects what happened in real life, with the credit being applied when it was issued not before it was issued.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • jenni's avatar
      jenni
      Experienced Cover User
      3 years ago

      Hi Tracey,

       

      Thanks for your reply!  That clears things up for me.

       

      Sorry, just one more question... If I change the date I apply the credit to the invoice to 15.7.2021, but use the credit amount to reduce my June payment to the supplier, will that have any affect on reconcilliations for June?

       

      Thanks!

      Jenni

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        3 years ago

        Hi jenni 

         

        The invoice will only be reduced in the month the credit is applied. So in the Payables reconciliation report for June the invoice would appear as the whole amount because the credit hasn't been recorded or applied as at 30 June. If you run that report to the end of July the invoice will be reduced by the credit amount.

         

        Please let me know if you need further help.

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