Payment is Allocated to the wrong Sales Invoice

At the moment, Zumzum Financials does not support unposting/deleting a payment allocated to a Sales Invoice (also called Bank Customer Receipt).

If the user happens to have allocated payment to the wrong invoice by mistake, the way to proceed would require the following actions:

a) Canceling the Sales Receipt, which requires combining a Sales Credit, a Bank Payment and a Sales Invoice;

b) Booking a new Sales invoice to replace the one paid-off by mistake;

c) Posting a new Bank Customer Receipt to the appropriate invoice

1 – Enter A Sales Credit

In the Customer account, raise a Credit Note for the same Invoice Date, VAT Rate, Net Amount and Tax Amount as the invoice that was paid-off by mistake. The effect of this action will be “canceling” the effect of the invoice in terms of Profit and Loss, Customer Balance, etc.

2 – Enter A Bank Payment

In the Bank tab, use the Bank Payment feature to enter a new Bank Payment. The Bank Payment has to be posted with the same VAT Rate, Net Amount, Tax Amount, Date of the Sales Receipt that the user wishes to cancel/refund. The suggested nominal code for this Bank Payment is a Suspense Account.

3 – Enter A Sales invoice To Allocate To Your Sales Credit In Step 1

In the Customer account, raise a new Sales Invoice for the same VAT Rate, Net Amount and Tax Amount as the Credit Note booked in point 1. However, the user will have to be sure to use the same date and nominal account as the Bank Payment booked in point 2. The user will allocate this Sales Invoice to the Credit Note. That way both items will be cleared off from the customer account.

When booking this Sales Invoice, the user will have to make sure there is no Revenue Recognition Rule or Multiple Payment Milestones associated to the product used.

4 – Enter A New Sales invoice

In the Customer account, raise a new Sales Invoice for the same Invoice Date, VAT Rate, Net Amount and Tax Amount as the invoice that was paid-off by mistake. The effect of this action will be “re-issuing” the invoice that was paid by mistake. Now it will be open again so the user can allocate the payment to it when necessary.

5 – Enter A New Bank Customer Receipt

In the Bank tab, use the Customer Receipts feature to book a new Customer Receipt. This will have to be allocated to the relevant invoice as was originally intended..

NOTE: The limitation that this procedure entails is the following: whereas the invoice paid by mistake will appear to be paid-off per Zumzum Financials, the same invoice will be outstanding per the customer’s accounting system. However, the total customer balance will be correct. In other words, the user will notice that the outstanding Sales Invoice (see point 4) will have a different invoice number per Zumzum Financials, and per the customer’s accounting system.

Also, the user will notice that after applying this method both Sales Tax Control Account and Purchase Tax Control Account will be overstated by the tax amount corresponding to the bank payment. However, the net VAT liability amount will be correct. If the user wishes to remedy this, a simple Journal entry is suggested.