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Credit note automatically deducted from invoice balance

Martin58
Explorer
0 Kudos
152

SAP B1 v10

Good afternoon,

When a credit note is created from an existing invoice, it automatically reduces the open balance. Is there a way around this? They are two documents with unique identifiers, but on Account balance or Internal reconciliation it is one line with balance and balance due. Sometime I need to be able to use just the credit note or the full original invoice value, particularly when allocating payments of course.

For example, if I issue a credit note to a customer for an invoice not yet due, more often than not that will be deducted from a payment before the customer has to pay the actual invoice. This means I have to leave a balance on another invoice until the original invoice is paid. Is there a better solution?

Hopefully this makes sense!

Thanks.

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mathurifico
Explorer
0 Kudos

 

In SAP, credit notes and invoices are often linked to ensure accurate account balance reconciliation. However, the automatic offsetting of credit notes against invoices can cause issues like the one you described. To manage this situation more flexibly, here are some options you can consider:

1. Decouple the Credit Note and Invoice During Allocation

  • Use manual clearing in SAP to decouple the credit note and the invoice. This involves:
    1. Posting the credit note to the customer account but not linking it directly to the invoice.
    2. During payment allocation, manually decide how to apply the credit note and payments to specific invoices.

Steps:

  • Go to Transaction F-32 (Clear Customer) or similar.
  • Select the open items (invoice, credit note, and payment) you wish to reconcile.
  • Manually apply the payment to the invoice, leaving the credit note unallocated for future use.

2. Use Down Payment or On-Account Posting

  • Instead of directly creating a credit note, post it as a down payment or an "on-account" amount.
  • This way, the credit amount is not tied to a specific invoice and can be applied flexibly when needed.

Steps:

  • Use Transaction F-29 for down payment posting.
  • Later, allocate the down payment or on-account posting to the relevant invoice using manual clearing.

3. Adjust Configuration for Automatic Clearing

  • In SAP customization (IMG → Financial Accounting → Accounts Receivable and Accounts Payable → Business Transactions → Incoming Payments → Clearing), adjust the rules for automatic clearing. This allows more control over how credit notes are matched to invoices.
  • For example, you can prevent automatic reconciliation for certain document types.

4. Block Automatic Clearing for Credit Notes

  • Another option is to configure the credit note document type to block it from automatic clearing. This ensures that credit notes remain as open items and can be handled independently during payment allocation.

Steps:

  • Update the document type configuration (OBY6) to exclude automatic clearing for credit notes.
  • Alternatively, use a specific posting key or reason code to differentiate these documents.

5. Customer Communication & Adjustments

  • Communicate with your customers to clarify how credit notes and payments should be treated. For example:
    • Request separate payments for invoices and credit note adjustments.
    • Align payment terms for invoices and credit notes to avoid pre-payment confusion.

6. Alternative: Use Special G/L Transactions

  • Post the credit note as a Special G/L transaction (e.g., a noted item or statistical posting). This keeps the credit note visible but prevents it from offsetting open invoices automatically.

Steps:

  • Configure special G/L indicators in FBKP.
  • Post the credit note using the special G/L indicator.

Final Recommendations:

  • If you need flexibility, manual clearing or down payment posting is the most effective solution.
  • Ensure your SAP team aligns the settings for your specific business requirements to avoid unintended consequences of automatic clearing.
  • Test your changes in a non-production environment to confirm they meet your needs