Hi All,
I have a question. I need to pay 10 Invoices of a supplier (1000$ each Invoice). I have paid 9500$ I have applied 1000 to each invoice and 500$ to 10th Invoice.
Now my questions is: What should I do if I want to close that invoice and later the supplier balance should show again as 500$ as balance.
please help me.
Invoice closing?
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Murthyoracle
- Posts: 147
- Joined: Thu Sep 06, 2007 9:13 am
- Location: India
Hi Kirti,
What about reamining 500$ of 10th Invoice amount. For Closing the Invoice , you should pay the amount. If u want cancel the 10th invoice you have to cancel invoice. You have not given clear picture why you have stopped payment of 500$ and why you want to close the 10th invoice. Can you give clear picture.
Regards.
What about reamining 500$ of 10th Invoice amount. For Closing the Invoice , you should pay the amount. If u want cancel the 10th invoice you have to cancel invoice. You have not given clear picture why you have stopped payment of 500$ and why you want to close the 10th invoice. Can you give clear picture.
Regards.
[quote]1st: pay the invoice completely i.e for $1000
2nd: close the invoice
3rd: raise a credit memo of $500 against the same suppier.
so at the end, u r able to close the invoice and still have $500 as supplier balance..try this process and let me know how it works.
<i><div align="right">Originally posted by ush
2nd: close the invoice
3rd: raise a credit memo of $500 against the same suppier.
so at the end, u r able to close the invoice and still have $500 as supplier balance..try this process and let me know how it works.
<i><div align="right">Originally posted by ush
hi ramsabi
thanq for the explanation...u r very much right abt the memo's concept..but the original poster wants to pay only $9500 instead $10000....and want to close the invoices for some reason!
yes, i didnot mention negative sign beside $500...as i took it for granted w.r.t debit and credit memo's.
and here, according to my understanding...we are charged excess of "$500"...so according to your explanation and upto my knowledge a credit memo is raised against/by that supplier.
correct me if i am wrong...i like this brain storming
[quote][quote]1st: pay the invoice completely i.e for $1000
2nd: close the invoice
3rd: raise a credit memo of $500 against the same suppier.
so at the end, u r able to close the invoice and still have $500 as supplier balance..try this process and let me know how it works.
<i><div align="right">Originally posted by ush
thanq for the explanation...u r very much right abt the memo's concept..but the original poster wants to pay only $9500 instead $10000....and want to close the invoices for some reason!
yes, i didnot mention negative sign beside $500...as i took it for granted w.r.t debit and credit memo's.
and here, according to my understanding...we are charged excess of "$500"...so according to your explanation and upto my knowledge a credit memo is raised against/by that supplier.
correct me if i am wrong...i like this brain storming
[quote][quote]1st: pay the invoice completely i.e for $1000
2nd: close the invoice
3rd: raise a credit memo of $500 against the same suppier.
so at the end, u r able to close the invoice and still have $500 as supplier balance..try this process and let me know how it works.
<i><div align="right">Originally posted by ush
Absolutely agree with you if the intention was to leave a balance RECOVERABLE from the supplier. I did not think of it in those terms. Reading the original post again, I can see that it needs more clarity. The poster says "........and later the supplier balance should show again as 500$ as balance."
The word "again" implied that he needs a CREDIT BALANCE of $500.
What balance needs to be left in the supplier's account? Payable or recoverable?.
Also your second step is redundant. There is no necessity or functionality available to "CLOSE" an invoice. Once an invoice is fully paid it is "CLOSED".
I am discussing this question in the context of 11.5.10.2.
[quote]hi ramsabi
thanq for the explanation...u r very much right abt the memo's concept..but the original poster wants to pay only $9500 instead $10000....and want to close the invoices for some reason!
yes, i didnot mention negative sign beside $500...as i took it for granted w.r.t debit and credit memo's.
and here, according to my understanding...we are charged excess of "$500"...so according to your explanation and upto my knowledge a credit memo is raised against/by that supplier.
correct me if i am wrong...i like this brain storming
[quote][quote]1st: pay the invoice completely i.e for $1000
2nd: close the invoice
3rd: raise a credit memo of $500 against the same suppier.
so at the end, u r able to close the invoice and still have $500 as supplier balance..try this process and let me know how it works.
<i><div align="right">Originally posted by ush
The word "again" implied that he needs a CREDIT BALANCE of $500.
What balance needs to be left in the supplier's account? Payable or recoverable?.
Also your second step is redundant. There is no necessity or functionality available to "CLOSE" an invoice. Once an invoice is fully paid it is "CLOSED".
I am discussing this question in the context of 11.5.10.2.
[quote]hi ramsabi
thanq for the explanation...u r very much right abt the memo's concept..but the original poster wants to pay only $9500 instead $10000....and want to close the invoices for some reason!
yes, i didnot mention negative sign beside $500...as i took it for granted w.r.t debit and credit memo's.
and here, according to my understanding...we are charged excess of "$500"...so according to your explanation and upto my knowledge a credit memo is raised against/by that supplier.
correct me if i am wrong...i like this brain storming
[quote][quote]1st: pay the invoice completely i.e for $1000
2nd: close the invoice
3rd: raise a credit memo of $500 against the same suppier.
so at the end, u r able to close the invoice and still have $500 as supplier balance..try this process and let me know how it works.
<i><div align="right">Originally posted by ush
-
Murthyoracle
- Posts: 147
- Joined: Thu Sep 06, 2007 9:13 am
- Location: India
Wow,
What a discussion.
Now finally what is the solution. The poster requirement is close the invoice and again balance of supplier should be shown as Rs.500/-.
This means that we have to pay Rs. 500/-( Payable) or ( Recoverable) as poster requirement is not clear.
a)Here Invoice closed means we can take it as, the 10th invoice was fully paid to supplier with an amount of Rs. 1000/-. Here Supplier balance is Zero and invoice can be treated as closed.
b) Now as per the requirement of Poster , and again supplier balance should be shown as Rs.500/-. It means supplier balance should be shown as Rs. 500/-(payable).
For showing Payable balance to supplier , Here 2 options are there .
Ist is , By treating as Fresh invoice we should receive a fresh invoice from Supplier with an amount of Rs. 500/- (this point is my imagination).
2nd option is , If this balance(Payable) treats in continuation to earlier 10th invoice, means we have to receive a Credit memo from Supplier for an amount of Rs. 500/-. This will be adjusted against 10th Invoice.
With the abvoe 2 options supplier balance will be shown as Payable.
As far as my understanding, for Recoverable from supplier,
we can raise Prepayment with an amount of Rs. 500/- against the supplier and later on it will be adjusted to any Std. Invoice.
If any Refund from Supplier , raise debit memo and adjust against the particular invoice and select payment thourgh refund options.
This is the process as per knowledge.
What a discussion.
Now finally what is the solution. The poster requirement is close the invoice and again balance of supplier should be shown as Rs.500/-.
This means that we have to pay Rs. 500/-( Payable) or ( Recoverable) as poster requirement is not clear.
a)Here Invoice closed means we can take it as, the 10th invoice was fully paid to supplier with an amount of Rs. 1000/-. Here Supplier balance is Zero and invoice can be treated as closed.
b) Now as per the requirement of Poster , and again supplier balance should be shown as Rs.500/-. It means supplier balance should be shown as Rs. 500/-(payable).
For showing Payable balance to supplier , Here 2 options are there .
Ist is , By treating as Fresh invoice we should receive a fresh invoice from Supplier with an amount of Rs. 500/- (this point is my imagination).
2nd option is , If this balance(Payable) treats in continuation to earlier 10th invoice, means we have to receive a Credit memo from Supplier for an amount of Rs. 500/-. This will be adjusted against 10th Invoice.
With the abvoe 2 options supplier balance will be shown as Payable.
As far as my understanding, for Recoverable from supplier,
we can raise Prepayment with an amount of Rs. 500/- against the supplier and later on it will be adjusted to any Std. Invoice.
If any Refund from Supplier , raise debit memo and adjust against the particular invoice and select payment thourgh refund options.
This is the process as per knowledge.
If the questioner wants to have $500 as payble by the company , then create credit memo nullify this invoice and raise fresh invoice with $500 and give clear narration here.
If the questioner wants $500 as recoverable Create credit memo for$500 close invoice and create one more credit memo for $500 .
*
Many people are getting this doubt. The simple way of understanding...
Here there are two parties in Debit/Credit Memo. For convenience let us say one party is Maker and the Second Party is Recipient.
1. Maker- Party which prepares or makes or raises Debit / Credit memo
2.Reciepent - Party which receives Debit/Credit Memo from the Maker
In case of Debit Memo -- The Recipient?s account gets debited in the books of Maker ( obviously Maker's account gets credited in the books of Recipient)
In case of Credit Memo -- The Recipient?s account gets credited in the books of Maker ( obviously Maker's account gets debited in the books of Recipient)
Briefly - Recipient?s account gets Debited ( Debit Memo) , Credited ( Credit Memo) in the books of Maker
But if we think with some logic? in case of purchases? , the buyer raises debit memo to decrease his (buyer) liability to pay , because the memo benefits buyer and he will be in the anxiety to get the benefit of it . Simply, we can say , if this is not raised the looser is buyer , that is why buyer acts quickly. Of course some times even seller may also raise Credit memo. In case of sales vise versa.
But in AP module of oracle ?
1.The normal context is , in case of vendors , your organization is liable to pay to vendor
2.But Debit/credit memo (invoice type) purpose is reversing the normal context . That is decreasing the liability to pay to vendor. In brief we can say Debit/Credit Memo (invoice type) in AP module decrease the liability to pay to vendor. Both Debit/Credit Memo (invoice type)serve the same purpose .
From all above , one thing that should be understood is.. Invoice Type in AP module for entering data is different from the document or paper sent to the second party recipient. The sentence ?Both Debit/Credit Memo (invoice type)serve the same purpose ? is valid only for Invoice Type in AP module for entering data.
Suppose if your company wants to decrease the liability to pay to the vendor , then the name of the document / paper prepared and sent to the vendor is ?DEBIT MEMO?. But while recording this transaction in AP module you can select invoice type either ?DEBIT MEMO? or ?CREDIT MEMO?.
Ravi Sankar
If the questioner wants $500 as recoverable Create credit memo for$500 close invoice and create one more credit memo for $500 .
*
Many people are getting this doubt. The simple way of understanding...
Here there are two parties in Debit/Credit Memo. For convenience let us say one party is Maker and the Second Party is Recipient.
1. Maker- Party which prepares or makes or raises Debit / Credit memo
2.Reciepent - Party which receives Debit/Credit Memo from the Maker
In case of Debit Memo -- The Recipient?s account gets debited in the books of Maker ( obviously Maker's account gets credited in the books of Recipient)
In case of Credit Memo -- The Recipient?s account gets credited in the books of Maker ( obviously Maker's account gets debited in the books of Recipient)
Briefly - Recipient?s account gets Debited ( Debit Memo) , Credited ( Credit Memo) in the books of Maker
But if we think with some logic? in case of purchases? , the buyer raises debit memo to decrease his (buyer) liability to pay , because the memo benefits buyer and he will be in the anxiety to get the benefit of it . Simply, we can say , if this is not raised the looser is buyer , that is why buyer acts quickly. Of course some times even seller may also raise Credit memo. In case of sales vise versa.
But in AP module of oracle ?
1.The normal context is , in case of vendors , your organization is liable to pay to vendor
2.But Debit/credit memo (invoice type) purpose is reversing the normal context . That is decreasing the liability to pay to vendor. In brief we can say Debit/Credit Memo (invoice type) in AP module decrease the liability to pay to vendor. Both Debit/Credit Memo (invoice type)serve the same purpose .
From all above , one thing that should be understood is.. Invoice Type in AP module for entering data is different from the document or paper sent to the second party recipient. The sentence ?Both Debit/Credit Memo (invoice type)serve the same purpose ? is valid only for Invoice Type in AP module for entering data.
Suppose if your company wants to decrease the liability to pay to the vendor , then the name of the document / paper prepared and sent to the vendor is ?DEBIT MEMO?. But while recording this transaction in AP module you can select invoice type either ?DEBIT MEMO? or ?CREDIT MEMO?.
Ravi Sankar
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luckykiriti
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