Applying credits to a supplier payment?

[Naomi_Roskell]

Hi Forum!!!

Been a while between drinks, every now and then I get annoyed enough that I MAKE time to come here and vent my frustration at the clunkiness of this darn software, and here's one of those days...

Back in June last year, a fellow by the name of @Conspirio posted about Supplier Credits. Now, to me, his issue is that he needed to apply a Supplier Credit to a Supplier Payment. As in, a Supplier Bill was processed & paid, then a Credit was received from the Supplier which needed to be applied to the Payment which frees the payment amount to be applied to another Bill from the Supplier. Well, that's how I read it anyway, and I don't feel the issue was resolved, then the thread was closed, so I've copied & pasted the comments from that thread into this post, hoping that we can get a resolution, coz I have this issue & I'm really, really frustrated!!!

So, just in case, I've not made it clear, the next step I've taken is to process the Supplier Credit as a Negative Bill (which is ridiculous), but how do we apply the Credit to the Paid Bill freeing up the payment amount to be applied to another Bill from that Supplier?

The only option I can think of, is to delete the payment originally made, apply the Credit to the bill and apply the original payment to a later Bill, but that has all sorts of ramifications with regard to GST and Bank Reconciliations...

Here's where the last thread went...

@Conspirio 

Hi guy's, I am wondering how, or if there's a easier way then I'm trying to do, but all I want to do is add a supplier credit to my supplier payment. I'm sorry if this doesn't make sense but I'm Leaning as I go. I have let's say $2000 of supplier bills to pay, I also have $500 of supplier credits to be applied. The invoices relating to the credits are paid and gone. I'm trying to create a supplier payment by clicking the invoices I wish to pat but do not have the option to apply the credits that are entered into the system as they're simply not listed. For example I'd like to select the $2000 worth of invoices, the select the $500 credit to show I've paid $1500 total. Is this even possible or am I attacking this completely wrong? Thanks for reading and any advise 🙏

@MMTSR 

I'm so glad you asked this question. I,too, am frustrated with the way you have to enter a 'credit" as a 'bill'...but when you go to make a supplier payment...the credits dont appear in your bill list, to be checked off with the payments. VERY ANNOYING. The credits have to be applied using the supplier returns function...but then don't appear on the remittance advice sent to the supplier. I have to manually advise the credits that have been applied on the remittance before sending. EVEN MORE ANNOYING!!

@Earl_HD 

Hi @Conspirio 

Thank you so much for your post. Yes you're doing it correctly, To process a customer credit for times when a customer returns an item or cancels their order, you first need to record a credit transaction and then record the settlement of the credit as a refund or by applying it to another outstanding invoice.

This help article will give you more information about Settling customer credits and Customer returns, credits and refunds
Regards,
Earl

MYOB Community Forum

@MMTSR

Is there any chance the software designers can include the credits in the supplier invoices list, to be checked off when making the supplier payment?

Then maybe they can show in the remittance advice also?

I have to manually list all credits applied when sending the remittance.

@Conspirio 

Earl, unfortunately your response makes little sense as I am talking about supplier credits, not customer credits. The issue inam referring to is exactly the same as MM has reported it is frustratingly difficult to process a simple credit note from a supplier. 

@Celia_B 

Hi @Conspirio 

Thank you for your post. And we appreciate your patience in the issue.  And thanks for updating us and getting back to us. I can see how this situation affected you.

In general, If you want to apply a credit note on the supplier credit, You can enter a negative line creating a bill by entering the No of units as a negative and the Unit price as a Positive. So to record a supplier credit note, go to Create Bill and enter No of units as negative. You will then be able to process the supplier return.  You can check on this Help Article: Entering Payments made to suppliers this can serve as a guide and it contains more information. 
 

I hope this helps. If you need further assistance feel free to post again.  I'm happy to assist. 

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

Cheers, 

Cel

MYOB Community Forum

[Conspirio]

Following  

I believe I gave up on this but I have some credits coming up so I am very interested in finding a better way. 

Thanks for re-igniting the convo. 

[MikeG1]

Hi @Naomi_Roskell and @Conspirio, leave this with me. I can see that there is quite a thread here and I would love to try and provide a clear answer for you both.
I am working with a couple of internal product experts to assist me in providing a response and should be able to confirm later today. Cheers, Mike

[MikeG1]

Hello, sorry that I was unable to respond to you with more information yesterday or today. I will continue to follow this up and hope to have an update tomorrow. Cheers, Mike

[Richard1052]

I too am frustrated with the system MYOB uses.

Like @Naomi_Roskell and @Conspirio, I too wish unapplied credit notes gets listed with other open invoices and I can simply tick what is going to be included together in the payment. The supplier should be able to see all the invoices and all the credit notes that is included in the payment on the remittance advice.

At the moment I have to go the "Supplier return" and apply the credit note to one of the supplier invoices, which reduces that invoice amount before I make the supplier payment. I'm not sure how it appears on the remittance advice but it likely looks like we underpaid the invoice that the credit note was applied to?

[Richard1052]

Hello everyone on this thread,

To get around the issue that is yet to be rectified by MYOB, ie. show credit note together with invoices to be paid when Create supplier payment, this is what I just did:

I applied the credit note to one of the invoices first. Then in the Record payment to supplier screen I ticked the box Show closed bills. The credit note with appear in the list but as it has already been applied to an invoice, it shows zero dollars and the invoice that it is applied to shows a reduced value.

At least in the remittance advice, the invoices and credits that relates to the payment is listed as long as you tick the right boxes. Hope this helps everyone waiting for a more elegant fix from MYOB.

[TBST]

Thankyou for bringing this up Naomi! 

I find it extrememly frustrating also. My issue is the credit I need to apply to a paid invoice must go against the one that the credit was received for as we wont be using the supplier again. So its pointless leaving a credit pending when it cant be used against a future transaction.

Would be great if there was a simple way that MYOB could give an option for a credit to be received