Payments partially allocating error when Negative line entry in customer invoice
Issue: We use a customer account to enter daily takings for a retail business . Items have been set up for the sales groups, but also for other accounts such as the funds put in the ATM, internal suspense accounts, variance accounts and the POS debtors.
Before recognising the payment could also be entered as a line item within the daily takings invoice, we entered the payments manually and allocated to each day. However we had an issue when trying to allocate payments to invoices that they would seem allocated but once the allocation was processed an amount still remained unpaid, repeating the process seemed to decrease the amount infinitely but never totally.
Reckons advise is negative line items cannot be entered in customer invoices, and discount should be used. However this was not appropriate as the payments go through for the bank rec (its not a discount on the sale) - we are using the functionality of the customer ITEM set up to channel to the relevent part of the ledger , not reduce
the value of a sale
Reckon told me to reverse Each and Every transaction on the
entire account, well over 5000 transactions. I asked if they meant just the affected transactions and they said no we would need to reverse all of them. This is not correct
You don’t have to reverse every transaction – you don’t even have to reverse negative lines at all UNLESS the negative line item on the invoice when the line item is set up as PAYMENT type (not other charge)
So you can have negative line items on a customer invoice, providing the Item is set up as a other charge (not payment) when there is instances the line amount needs to be negative