A credit memo is used to reduce the charges which are related to previously invoice sale. A credit memo decreases the account balance by the credit memo amount.
Setup the transaction type.
Enter a credit memo.
Complete the transaction.
Query the transaction
Apply either the % or amount.
Apply the whole as credit memo.
Split term method
FIFO
LIFO
PRORATE
Setup the transaction type: PR CREDIT MEMO
As we create the debit memo before, similarly credit memo with creative sign: negative (to reduce the customer balance).
Enter a transaction for the class credit memo.
Select the source: transaction source PR source
Select the class as credit memo & type as PR credit memo.
Give the date & GL date & currency.
Select the customer (PR customer), so that the ship to and bill to details get filled up.
Click the line details to give the negative amount.
NUM ITEM
DESCRIPTION
QUANTITY UNIT PRICE AMOUNT
1 FESTIVE OFFER -500.00
Click save & close the line window.
Complete the transaction by clicking the complete window.
Click details to view the details of the amount and we can see the negative amount to indicate the reduction amount in customer balance.
ANOTHER METHOD FOR CREDIT MEMO:
Retrieve the existing transaction with class as invoice and immediate payment term and balance due is 10,000.
In order to reduce the transaction balance Go to menu actions credit
It will go to the credit transaction window.
Credit transaction (vision operation: USD) PR, customer new.
Credited transaction
NUMBER 2975 1021 SOURCE PR SOURCE
CREDIT MEMO
Batch: none batch name
Source PR source date: 1-nov -2011 complete transaction
NUMBER 1052
Reference type: PR credit memo Reason
GL date: 1-nov-2011 rule method: split term method Currency: USD
TRANSACTION AMOUNT
MORE
Transaction amount tab
Credit memo credit transaction
LINE TAX FREIGHT % AMOUNT ORIGINAL BALANCE DUE
3.8464 -2000 52000 50,000
TOTAL 3.8462 <2000.0> 52000 50,000
COMPLETE CREDIT BALANCE CREDIT LINES We can either specify the percentage or –ve amount.
If we specify the –ve amount, it will automatically calculate the “%”.
Click complete button to complete the transaction.
It automatically generates the transaction number 1052.
Close the window.
Click on the refresh button in the 1021 invoice to see the reduction in the balance due amount.
Click details to view the details of the amount.
Credit balance:
Another way to reduce the entire amount of the transaction is by clicking the credit balance. It displays the message box.
APP-AR-11641
The balance amount of the transaction has been credited. Please save your changes &
complete the credit memo. OK
Click ok & save.
We can see the following transaction amount
LINE TAX FREIGHT
% AMOUNT ORIGINAL BALANCE DUE
100.000 -10000.00 10000.00 0.00
100.000 0.00 0.00 0.00
0.00 0.00
TOTAL 100.000 -10000.00 10000.00 0.00
WE CAN SEE THE BALANCE DUE REDUCED TO ZERO.
Credit lines button:
Another way to reduce the amount is by clicking CREDIT LINES. Button on the credit transaction window.
N deposit an amount on the ordering of goods.
Setup the transaction type of class deposit
Enter the header level details of transaction of class deposit.
Enter commitment details.
Complete the deposit transaction.
Enter the regular transaction
Attach the commitment to the transaction.
Complete the transaction.
Navigation; Transaction; Transaction Type
Select the class as Deposit and
Uncheck the allow freight and tax calculation o Click save and close.
If Line, Tax and Freight is also selected from the Allocation basis, then also Allow freight and Tax calculation is disabled, we can’t select it.
Now enter the transaction in the transaction window. Select the transaction source, class deposit Type, ship to Name. Give the GL date, Date, Currency.
Give the Line Details in the Line window by clicking the Line details button.
If the class->Deposit is selected, a commitment Tab is displayed. In the commitment Tab, Give the follow details or amount and date.
Commitment Tab.
Effective date 10-nov-2011 Amount.5000.00
Item.
Memo line
Description Advance Payment Transaction
The invoice Number 1034 is entered on 10-Nov-2011 or Date is 10-Nov-2011.
Click save and close.
See, you have entered a transaction with deposit as class but now enter the transaction with class as invoice and Line amount as 20,000.
Now attach the Deposit Transaction Number 1034 to the Commitment field in the main window.
Commitment->1034 Click save and complete.
On completing the transaction, we can see the balance amount as 15000.
Click details button to view the details.
Commitment –Guarantee:
A guarantee is a documentation of a Promise made by the customer to obtain the goods from the organization. In this case, no money is received from the customer.
Setup the transaction type of class guarantee.
Enter the header level details of transaction of class guarantee
Enter the commitment details
Complete the guarantee details
Enter a regular transaction
Attach the commitment to the transaction.
Complete the transaction.
Setup the transaction type of class guarantee
Create a transaction type PR guarantee with class guarantee and give remaining values as given for the PR debit memo.
Enter the transaction type of class guarantee in the transaction window.
Select the transaction source, class as guarantee, type as PR guarantee, ship to name as PR customer.
Give date (1 nov 2011) ,GL date, currency & payment as immediate.
Give commitment amount and date in the commitment tab as 1 nov 2011 &5,000.0
Save and complete the transaction.
Now enter another transaction of class->invoice, type->PR invoice and balance due for the particular transaction is 20000.
Now attach the guarantee transaction number (1035) in the commitment field of the regular invoice transaction & complete the transaction. Now still we can see the balance due amount as20, 000 even after applying guarantee. so, guarantee is nothing but a documentation of Promise made by the customer to obtain goods from organization.
Click save & complete the transaction.
Click the details button to view the details of transaction. Here we can see a new field.
Applied to commitment 5,000 will be displayed.
Consolidated billing invoice:
One can print a single monthly bill, which includes all customer transaction for a particular period.
In this case, we will go for a consolidated billing invoice. There is no need separate invoice foe each transaction.
Prerequisite for consolidated billing invoice.
Enable show billing in system option -> Trans & customer tab.
Attach the Proximal payment term in the customer Profile class.
Enable consolidation billing formats in customer Profile class -> save the class.
Enter a transaction with Proxima payment term.
Enter more transaction by using action-> copy to from the menu bar. Or
Run the Program –Print draft consolidated billing invoice.
After selecting the entire Prerequisite enter the regular invoice transaction with payment term as Proxima payment and give the line details and complete the transaction.
Select action->copy to from the menu bar, it displays the copy transaction window. OR
Transaction -> copy transaction & give Tran’s number.
Copy transaction (vision operation) Model transaction: Due date: 20-nov-2011 GL date: 1-nov-2011
---Schedule---
o On saving, it will generate the 5 new transaction number generated having different transaction date, since the number of days is 1, and also it creates a new request ID.
Now, run the Program->consolidated billing invoice.
Click Print document-> consolidated billing invoice.
It displays a new window. Select a single request and click ok.
This allows submitting an individual request.
It displays the Print consolidated billing invoice window.
Print consolidated billing invoice.
Run this request.
Name:”Print draft consolidated billing invoice:
On selecting this, it will create new window-parameter
Parameters
Customer 4090 PR customer Bill of date 9684 PR customer
Cut of date 15 Nov 2011 Last day of month no Payment term: PR Proximal Currency: USD
Type->detailed consolidated billing invoice (summary also available) Pre-Printed stationery: no
OK CANCEL CLEAR HELP Click OK & submit the request.
(1) A request ID is generated .check whether request is completed by going on the (2) View->request->find.
ii) Click view output button to view the output. We can see consolidated report for various dates.
iii) Close the report as well as request.
Transaction batches:
One can enter many transactions in a single batch.
One can view the differences between the control and actual totals as one enters the transaction.
This will alert the data entry operator about the data entry error or missing or lost transaction or duplicate entry.
Enter a transaction batch.
Enter the count.
Enter the amount.
Enter individual transaction.
View the transaction summary.
Navigation: transaction: batches.
Transaction batches: PR Tran bat Source: PR sources
Name: 100 ->transaction batch number generated on sources.
Batch date: 1 nov-2011 GLdate: 1- nov-2011 Currency: USD Status: new
Comment
Partially purged Totals
Count amount Control 3 300000.00 Actual 3 300000.00 Difference
Transaction summary transaction There are 4 statuses
i) New->
ii) Open->
iii) Closed->
iv) Out of balance->
If control total is 3 & amount 300000 then enter 3 transactions by clicking. TRANSACTION button & the total amount of 3 transaction should be 300000.00 if it is more than 300000 on then we can change the amount.
If 1 transaction is entered, then it transaction batch window, it shows the difference as 2.
Control 3 300000 Actual 1 100000 Difference 2 200000
Now change the status manually from new to out of balance, till the difference is zero.
After entering 3 transaction & the amount equal to 300000.
Control 3 300000 Actual 1 100000 Difference 0 0
When we change the status to OPEN the actual count & the amount is equal to the control count &
amount.
We change the status to CLOSED when the actual count & the amount of the transaction. Equals control count & amount & each transaction in the batch is closed by applying receipt against it.
Click TRANSACTION SUMMARY to view the individual transaction.
Invoice with rule-accounting rules
Accounting rules determines the total revenue record in each accounting period.
3 accounting rules 1. Fixed duration 2. Variable duration 3. Deferred duration
Fixed duration:
Accounting rule & type is of fixed duration.
AR will prorate revenue recognition evenly over a Predefined period of time.
Variable duration:
Accounting rule & type can be of variable duration.
One has to specify the number of period in which one wants to recognize revenue for which one assigns this rule of accounting.
Deferred duration or variable deferred:
One can use the deferred accounting rule by enabling the “deferred revenue check box” in the INVOICING & ACCOUNTING RULES.
Window when one defines this rule. One can use this deferred accounting rule to recognize the revenue by different %s over a period of time by using action wizard.
One can use deferred accounting rule only for invoices that assign the bill in advance invoicing rule.
FIXED
NAME TYPE
PERIOD NO .OF PERIOD
VARIABLE
NAME TYPE
PERIOD NO .OF PERIOD
DEFERRED
NAME TYPE
PERIOD ENABLE DEFERRED REVENUE
NAVIGATION: Setup: transaction: accounting rules.
Invoicing & accounting rules (AR vision operation (USA)) Name: PR fixed acct rule description: PR fixed account rule Type: accounting fixed duration active
Period month No. of periods: 5 Deferred revenue
Schedule
period Percent date
1 20
2 20
3 20
4 20
5 20
Total 100
Click on the schedule period to display the period automatically.
Click save & close.
Variable duration accounting rule:
Name: PR variable acct rule description: PR variable account rule Type: accounting variable duration active Period month no. of periods: 1
Deferred revenue Period % date
1 20 Total 20
Save the accounting rule;
The number of periods will be sat to 1 automatically.
Variable deferred accounting rule:
Name: PR def variable acct rule description: PR deferred account rule Type: accounting variable duration active
Period month no. of periods: 1 Deferred revenue Period % date
1 100 Total 100
Save the accounting rule;
The number of periods will be set to 1 automatically.
We need this rule when we enter transaction with invoicing new rules.
Invoicing rule-> in arrears – fixed
These rules define when to recover the receivables, expand more than 1 accounting period.
Invoice rule-in arrear with accounting rule fixed 1 has to use this rule to recognize the receivable at the end of the revenue recognition schedule.
Enter a transaction:
Attach the invoicing rule-in arrears at the “header level”
Attach the accounting rule –fixed duration at the “line” level complete the transaction.
Run the revenue recognition Program.
Finally view the journal entries.
Now transaction: transaction.
Select the source, class as invoice, type as PR invoice, customer.
Give the date, GLdate, currency.
Select the invoicing rule –in arrears
Invoicing rule in arrears
Rules tab is also added in the line window.
Click on the LINE ITEM button.
Line window->main tab.
Num item description uom quantity unit Price 1 PR item 2 wheeler each 100 100
Amount location
10,000.00 exempt. Click RULES TAB.
Num Item description Accounting Duration 1 st date
1 PR item 2
wheeler
PR fixed acct rule
5 1-nov-2011
Click saves & close this transaction while saving gets a note saying APP-AR-11426---transaction date has been set to 1-mar-2011 OK
Click OK & also it says.
APP-AR-11425---GL date has been set to 1-mar-2011 OK
Click OK & close the lines window & complete the transaction.
Balance due is 10,000.
In order to view the accounting entries, run revenue recognition Program.
Note: transaction num 1057.
Run the Program.
Control > accounting > revenue recognition Enable single request > radio button & click OK.
RUN this request---
Name: revenue recognition on selecting this it will ask for parameters window Parameter
Print format DETAIL Commit work YES OK CANCEL CLEAR HELP.
Click OK & SUBMIT.
Once the request is completed, click view output.
Go to transaction num 1057 in the query mode of transaction window & execute by Pressing ctrl+F11 key.
Click view > accounting to view the journal entries
Line type Account Debit Credit
receivable PR-000-1210-0000-000 10000
REVENUE PR-000-9003-0000-000 2000
REVENUE PR-000-9003-0000-000 2000
REVENUE PR-000-9003-0000-000 2000
REVENUE PR-000-9003-0000-000 2000
ROUNDING DISTRIBUTION PR-000-7827-0000-000 0.00
TAX PR-000-2520-0000-000 0.00
UNBILLED RECEIVABLE PR-000-1232-000-000 2000 UNBILLED RECEIVABLE PR-000-1232-000-000 2000 UNBILLED RECEIVABLE PR-000-1232-000-000 2000 UNBILLED RECEIVABLE PR-000-1232-000-000 2000 UNBILLED RECEIVABLE PR-000-1232-000-000 2000 UNBILLED RECEIVABLE PR-000-1232-000-000 2000
UNBILLED RECEIVABLE PR-000-1232-000-000 10,000
INVOICE RULE (II) in arrears with accounting rule variable.
Invoicing rule-in arrears with accounting rule variable.
Enter the transaction -attach the invoicing rule –in “arrears “at the header level.
Attach the Accounting rule –“variable” duration at the line level.
Complete the transaction.
Run the REVENUE RECOGNITION PROGRAM.
View the journal entries.
Enter the transaction as regular invoice transaction but select invoicing rule as in arrears.
Invoice rule: in arrears
Click line item button to enter the like item details & accounting rules.
Go to rule tab select the accounting rule as accounting:PR VAR ACCT RULE Rule tab
Num Item
description
Accounting Duration 1 st date
1 Pr item 1 2
wheeler
PR VAR ACCT RULE
5 1-NOV-2011
CLICK SAVE. On saving it displays a 2 note as we get while entering Previous invoices [(i.e.) in arrear fixed date invoices]
Save & complete the transaction.
Run the revenue recognition Program to view the journal entries.
Journal entries.
LINE TYPE ACCOUNT DEBIT CRED IT
RECEIVABLE PR-000-1210-0000-000 20000
REVENUE PR-000-9003-0000-000 4000
REVENUE PR-000-9003-0000-000 4000
REVENUE PR-000-9003-0000-000 4000
REVENUE PR-000-9003-0000-000 4000
REVENUE PR-000-9003-0000-000 4000
ROUNDING DISTRIBUTION
PR-740-7827-0000-000 0.00
TAX PR-000-2520-0000-000 0.00
UNBILLED
INVOICE RULE (III) –IN ADVANCE FIXED.
INVOICE RULE –IN ADVANCE with accounting rule fixed.
Enter a transaction
Attach the invoice rule –in advance at the header level.
Attach the accounting rule – fixed duration at the line level.
Complete the transaction.
Run the revenue recognition Program
View the journal entries.
Enter regular transaction attach the invoicing rule in the transaction window
Invoice rule: in advance
Payment term: PR IMM TR.
GIVE THE Accounting rule in the Accounting tab.
Num Item
description
Accounting Duration 1 st date
1 Pr item 1 2
wheeler
PR VAR ACCT RULE
5 1-NOV-2011
Click save, it displays 2 note click OK for those 2 notes & close the lines window.
Run the revenue recognition Program to view the journal entries.
Query the transaction 1056 & view the journal entries from the tools menu.
LINE TYPE ACCOUNT DEBI
REVENUE PR-000-9003-0000-000 4000 1
REVENUE PR-000-9003-0000-000 4000 1
REVENUE PR-000-9003-0000-000 4000
1
REVENUE PR-000-9003-0000-000 4000 1
REVENUE PR-000-9003-0000-000 4000 1
ROUNDING DISTRIBUTION
PR-740-7827-0000-000 0.00
TAX PR-000-2520-0000-000 0.00 1
1
UNBILLED RECEIVABLE PR-000-1232-0000-000 4000 1
UNBILLED RECEIVABLE PR-000-1232-0000-000 4000
1
UNBILLED RECEIVABLE PR-000-1232-0000-000 4000 1
UNBILLED RECEIVABLE PR-000-1232-0000-000 4000
1
UNBILLED RECEIVABLE PR-000-1232-0000-000 4000 1
UNBILLED RECEIVABLE PR-000-1232-0000-000 20,00
0 1
11) Invoice rules IV: in advance –deferred
1) Invoicing rule-in advance with accounting rule-deferred.
2) Prerequisite: at the system option level. Enter the sales credit Present limit (100) & enable require sales person in sales credit Present limit (100) miscellaneous tab.
3) Enter a transaction
Attach the invoicing rule- in advance at the header level.
Attach the accounting rule-deferred at the line level.
Complete the transaction.
4) Run the revenue recognition Program.
5) Run the revenue accounting Program.
Enter the scheduling revenue.
Enter the transfer sales credit.
6) View journal entries.
Enter the transaction with invoicing as in advance.
Give the accounting rule in line details window.
Rules tab: accounting: PR def VAR rule.
NUM ITEM DESCRIPTION ACCOUNTING DURATION FIRST DATE
1 PR ITEM 2 WHEELER PR DEF VER RULE 5 01 NOV 2011
Click save & close line window
Complete the transaction.
Run revenue recognition Program
Po control: accounting: revenue recognition: revenue
Click revenue recognition & ok.
Complete the transaction.
4. View the journal entry by tools - view accounting View the journal entry.
receivable PR-080-1210-0800-000 10000
ROUND LINE PR-740-7827-0800-000 0.00
TAX PR-000-2520-0000-000 0.00 1 1
UNEARNED REVENUE PR-000-2550-0000-000 10000 1
THE REVENUE IS NOT ALLOCATED TO TRANSFER A PERCENTEGE OF UNEARNED REVENUE TO REVENUE IN THE REVENUE ACCOUNTING WINDOW.
RUN THE REVENUE ACCOUNTING PROGRAM.
Control: Accounting: revenue accounting.
Find transaction window is opened.
Give the transaction number1059.
Transaction no: 1059 Select customer.
Click find.
It display revenue accounting & sales credit window revenue Accounting & sales credit-PR customer
TRANSACTION ACTION HISTORY
In transactions
LINE TYPE ITEM
DESCRIPTION
CATEGORY AMOUNT SCHEDULED UNSCHEDULED
1 PR ITEM 1 2
HERE we can see that the amount is NOT SCHEDULED. To schedule the amount Click action button
add non revenue sales credit
record acceptance
CANCEL BACK NEXT
CHOOSE scheduled revenue & click NEXT button.
A window to choose the amount or % of revenue to be displayed.
Choose the amount or % of revenue u wish to adjust.
TRANSACTION CURRENCY USD
TOTAL VALUE OF SELECTED LINES 10,000
ADJUSTABLE REVENUE 10,000
All adjustable revenue (z)
% of total value of selected lines(y) Amount
Select any 1 radio button & click NEXT button.
NUMBER 1080 TYPE PR INVOICE REVENUE
SCHEDULED
SOURCE PR SOURCE DATE 1 NOV-2011 UNSCHEDULED 10,000.00
REFERENCES CURRENCY USD
CUSTOMER NAME PR CUSTOMER ACTIONS
Here we select % & total value of selected lines radio button & click next Another window is displayed.
Step 5:
Amend the GL date if required & select a reason for the revenue adjustment.
GL DATE : 1-NOV-2011 TYPE: EARN REVENUE
REASON: REVENUE ADJUSTMENT COMMENT:
CANCEL BACK FINISH
Select reason & click FINISH button.
4 reasons are there
1. Incorrect sales person 2. Other
3. Revenue adjustment
4. Revenue management engine.
An action result window is displayed.
Action result
LINE TYPE ITEM
DESCRIPTION
CATEGORY AMOUNT SCHEDULED UNSCHEDULED
1 PR ITEM 1 2
On save, we can see the adjusted 50% from unearned revenue to revenue for the month of 1-nov-2011.so, I have transfer 50% amount from the unearned revenue to revenue.
GL DATE AMOUNT % CLASS ACCOUNT Action
number
1 NOV-2011 10000.00 100 UNEARNED
Then in revenue accounting & sales credits window ,we can see in the revenue item as
Then in revenue accounting & sales credits window ,we can see in the revenue item as