How to link JE with A/R invoice

Question

I have generated an A/R invoice. After generation I want to give some discount to customer, so I generated a JE for discount.
I want in customer ageing report the outstanding amount as bill amount less discount.
How this can be done.
Is there any way to link the JE to A/R invoice to show the correct outstanding amount.

Answer 1

Hi Sandeep,
as mentioned above, in 2007 it's not a problem since partial reconciliation on JE level is fully supported.
In the lower version you may only reduce the total balance due when using a credit memo standing on the invoice.
Should you be in a lower version you have several different options:
1.) Internally reconcile the JE with the invoice
-> disadvantage: Invoice is closed & will no longer appear in the ageing report
- hence: Not recommended
2.) Create the JE with the discounted amount & wait until remainder of invoice is paid, then reconcile partial payment with JE & invoice
-> disadvantage: a lot of room for user error, a lot of data needs to be held in mind of operator, mistakes almost inevitable.
-> Advantage: JE will appear in ageing report when run by journal entry.
- hence: only use for isolated incidents
3.) In incoming payments window, highlight invoice in question & use form settings to make column'Total discount' visible & active. Enter the discount amount in that field & notice that the amount in 'Total payment' has now been reduced by the discounted amount. Use Ctrl+B to pull this amount into the payment means & add the payment.
-> advantage: all reconciliations are correct & the discounted amount is posted into the appropriate account.
- hence: Recommended Procedure.
In the scenario that you describe I would therefore recommend that you reverse the manual JE already crteated & then proceed according to option 3.
All the best,
kerstin
All the best