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How to refund a customer after invoice is paid for a price reduction only?

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This is specific to SAP business one:

A customer was overcharged on their order from us. However, they paid the order in full and then notified us that we did not give them the correct customer discount and we charged them sales tax when they are, in fact, a reseller and would be exempt in their state in the USA.

How should we process this price refund in SAP Business One on a closed and paid Sales order?

Thank you.

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Answers (3)

Answers (3)

former_member225732
Contributor
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Dear Paul Schultz,

Please try below in test and if get satisfied result then do it in LIVE DB:

1. You can do AR Credit Note: Service type for differential amount.(As earlier suggested)

2. You can do AR Credit note: Item Type.

=> A. Take same items with its Qty which mention in AR Invoice.

B. Unit Price as your discounted amount for the item for the Qty

C. Tax Code

D. If you tick mark on Without Qty checkbox at line level(You can activate it from form setting)

E field all necessary fields as per your requirement and preview the JE.

If it gives you proper result, as required to you, then add it.

Hope this will clarify all process to you.

Best Regards,

Sandesh Shinde

msundararaja_perumal
Active Contributor
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Hello,

You need to create standalone A/R Credit Note on the A/R Invoice with Tax Only (Checkbox in row level, choose the exempt tax code), as this step will only the Tax Amount to be reversed and simultaneously updating the Tax Report accordingly.

Thanks.

former_member225732
Contributor
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Dear Paul Schultz,

You can pass AR Credit note for differential amount.

Best Regards,
Sandesh Shinde

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By AR Credit Note i assume you mean AR Credit Memo. We are using SAP business One version 9.1

Only way I know to do a Credit Memo on a price only adjustment is to do it as a Service (general ledger number) Credit Memo since product is not being returned. Problem with Service credit memos is that they do not show up on the Sales Analysis report by Item Group listing of all sales invoices and credit memos done. Do you have a different way?