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Thread: Payment Reversal -- Now What

  1. #1
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    Question Payment Reversal -- Now What

    Scenario:
    1. Customer gets Invoiced for 1 hour of labor (Vat-able)
    2. Supplier realizes a mistake was made on amount invoiced, and corrects it with a Debit Note (Vat-able) (linked to the Invoice)
    3. Customer negotiates settlement discount
    4. Customer makes payment for agreed upon lower amount
    5. Supplier issues Receipt (linked to Debit Note)
    6. Supplier issues Credit Note (Vat-able) (linked to Invoice) for discount portion to Customer
    7. two weeks later
    8. Bank reverses payment (for any number of reasons)
    9. Supplier reverses payment in books and cancels receipt that was linked to the Debit Note

    Conundrum:
    For 1 x Vat-able service delivered, SARS allows supplier to issue only 1 x Invoice and only 1 x Debit Note and only 1 x Credit Note

    Question:
    Which vat-able document can the supplier create to reverse the Credit Note that was created for the discount?

  2. #2
    New Member Biz_With_Bruce's Avatar
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    Hi Hp

    Use a customer journal to cancel the credit note
    Then send the customer an email informing him of the credit note cancellation due to whatever reason.
    Also send the customer a new statement showing that the full amount is payable again

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