How to Apply a Credit that shouldn't have been taken by customer

Kinetic ERP
1

Interested in hearing how others handle this situation:

We received a payment advice file from a customer outlining the 350+ invoices they are paying. The last 24 rows of the file show they are taking credits for previously paid invoices. These appear to be system generated transactions that appear to have been administrative changes to the PO and should have no impact on us.

The customer’s portal doesn’t give us much information, but it does show that their system generated a credit to be taken on 1/6/26 and an offsetting payment for that credit will be made on 3/1/26. The transactions net to $0…eventually.

The problem is that the cash that hits the bank is $123,456 - credits, but the credits will be offset in two months.

My question is what is the best way of handling this?

I do not want to find a random invoice to short pay as that is a tracking nightmare. Is there a way to create a $0 invoice to apply the credits to now and then apply the offsetting payment later? Should I enter the cash receipt amount as the total amount received less the erroneous credits?

Any help or suggestions are greatly appreciated.

Note: The endless list of people at the customer who can’t do anything about it cannot be fixed.

2

Hello Ian,

Have you looked at Debit Notes?

image
image739×408 30.8 KB

1 Like
3

Thanks for the suggestion Mark. Unfortunately Epicor won’t allow you to apply a Debit Note greater than the balance of the invoice. In this case all of the invoices are already paid and closed. The balances are all zero. It seems like the debit note actually does the opposite of what we want.

Current plan is to enter a cash receipt of the total payment advice less the credits and then make a journal entry to cash in the amount of the sum of credits. When the customer does eventually pay these invoices again, I will have to make another JE opposite of the first.

1 Like