Tip: Fulfilling a sales order of which the prepayment has not been completed

Written by Marcel Thijssen on . Posted in Exact Globe

In Exact Globe Next, you can work with prepayments. For a sales order, you can create an prepayment invoice that should be paid first. Until such time, fulfilment is blocked and the sales order cannot be fulfilled.

In certain situations, however, it could be desirable that the sales order is allowed to befulfilled despite the prepayment being only partly completed. Users that possess the sales function right ‘To allow exceeding customer’s credit line’ have the possibility to still fulfil the sales order in these kinds of situations. This functionality only applies to prepayment invoices of which part has been paid. The open part of the prepayment is deducted during fulfilment of the sales order so the eventual invoice amount reflects the actual amount paid by the customer. The amount not yet paid in advance will be included in the final invoice for this sales order.

Example

The example below will be used to further explain this method.

You have a sales order of 500,- of which an prepayment invoice is created for 10% of the order amount. This concerns an amount of 50,- euros. After creating and printing this invoice, an outstanding item of 50,- euros is created.

Journal Account Debit Credit
Sales Accounts receivable 50
Sales Revenue 50

Your customer then pays 30,- euros. You enter this in the bank journal and match it to the outstanding item of 50,-. The remaining 20,- remains open.

Journal Account Debit Credit
Bank Bank 30
Bank Accounts receivable 30

A user who possesses the sales function right ‘To allow exceeding customer’s credit line’ can fulfil the sales order. Upon fulfilment, the notification will appear that the advance payment invoice has been paid in part. The user can then choose to still fulfil the sales order by clicking ‘Continue’.

The sales order will then be fulfilled in the usual fashion. The difference is now that besides the fulfilment entry, an additional general journal entry will be created to deduct the remaining amount of the prepayment invoice.

Fulfilment entry:

Journal Account Debit Credit
General Stock 350
General COGS 350

General journal Entry:

Journal Account Debit Credit
General Accounts receivable 20
General Revenue 20

The outstanding item of the prepayment amount that remains to be paid will be deducted via above-mentioned general journal entry.

If the final invoice for the sales order is printed, the outstanding prepayment amount is included in the relevant invoice. The already completed prepayment was deducted from the final invoice. In the final printing of the invoice, the following entry is created:

Journal Account Debit Credit
Sales Account receivable 470
Sales Revenue 500
Sales Revenue 30

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