This page describes entering sales as credit losses and the adjustment of credit losses.
Entering credit losses
When you are forced to enter sales as credit losses, you must remember to remove the invoice from open invoices and accounts receivable. Use the Create credit invoice function to create a credit invoice for the original invoice in the Special situations view of the sales invoice being entered as a credit loss. You can also enter sales on journal receipts. Using a journal is recommended over using a sales receipt.
Check the invoice information and make any required changes, such as to the date or invoice channel (you do not have to send the credit invoice that creates the credit loss entry). Approve the invoice, which will open the following window:
Set the statuses of both invoices to Marked paid on the same date, select Credit loss as the payment method, and click on Continue.
Change the default sales entry into the credit loss account on the accounting page of the credit invoice. The credit invoice will reduce the sales VAT on the VAT summary.
After these steps have been taken, the invoice will have been removed from open invoices, settled from accounts receivable and entered as a credit loss, and the VAT paid for the original invoice will have been deducted from the VAT summary.
Adjusting credit losses
If you receive payment for an invoice entered as a credit loss, you must create a new sales invoice and adjust the credit loss entry. For the credit loss adjustment to be entered correctly as sales VAT, you must create a new sales invoice. The invoice can be created by copying the original sales invoice by choosing the Copy option after clicking on the Edit button in the Invoice view of the original sales invoice.
If the payment can be allocated to a sales invoice, this will be done in the Search view’s sections Bank statement focusing or Bank statements and reference payments, by entering the bank reference code in the Right reference field. You can also add a payment transaction by clicking on the Go to button on the sales invoice and selecting the Special situations option. This will set the receipt’s status to Marked paid.
Change the postings on the sales invoice’s accounting page as follows: