Epicor AR does not allow negative cash receipts (nor does it allow debit adjustments as far as I am aware). There are several business cases where we “need” to process negative cash receipts. We need to determine if there is an existing work-around in Epicor, or do we need to push for a customization. If there is a way to handle these business cases without customization, that would be ideal.
Scenarios:
Customer pays $250. There are two remittance lines: $310 and (60). There is an open invoice for $310 and an open credit memo for (60).
Customer pays $250. There are two remittance lines: $310 and (60). There is an open invoice for $310. There is NOT a credit memo. The (60) is an unauthorized deduction related to an invoice that had previously been paid in full on a prior payment. The deduction is not related to the open $310 invoice.
Customer pays $250. There are two remittance lines: $310 and (60). There is an open invoice for $310. The (60) does not belong to this plant. Another plant needs the negative cash (perhaps to apply to a credit memo on the other plant).
A PAYPAL or Credit Card transaction is negative. There is an open credit memo.
A PAYPAL or Credit Card transaction is negative. There is NOT a credit memo. The deduction is currently unauthorized but may inspire us to create a credit memo after deliberation.
What I am looking for is the best way to handle a Negative Receipt Amounts (possibly just within Cash Receipt Entry). At one point in Vantage you could have Negative Check Amounts.
Just because the check is less than the full Invoice Amount, it does not mean that the Customer is short paying us, it means they are taking advantage of agreed upon Credit Memo (They most likely paid us extra money at some prior time and they are taking advantage of it on a new invoice – Technically, we are even!)
Any help is appreciated or atleast sharing how you are handling such scenarios (assuming its a common business practice that happens often)
Customer pays $250. There are two remittance lines: $310 and (60). There is an open invoice for $310 and an open credit memo for (60). Apply the credit memo to the invoice and do a receipt against the invoice.
Customer pays $250. There are two remittance lines: $310 and (60). There is an open invoice for $310. There is NOT a credit memo. The (60) is an unauthorized deduction related to an invoice that had previously been paid in full on a prior payment. The deduction is not related to the open $310 invoice. You should still be able to do the cash receipt against both invoices. The net cash receipt is a positive.
Customer pays $250. There are two remittance lines: $310 and (60). There is an open invoice for $310. The (60) does not belong to this plant. Another plant needs the negative cash (perhaps to apply to a credit memo on the other plant). Does the other plant have a separate AR?
A PAYPAL or Credit Card transaction is negative. There is an open credit memo. More information required. Advance or Deposit Billing? The credit memo has no effect.
A PAYPAL or Credit Card transaction is negative. There is NOT a credit memo. The deduction is currently unauthorized but may inspire us to create a credit memo after deliberation. Same as above.
There are two remittance lines, I failed to mention that each remittance line is for a different Invoice… So sometimes a Customer sends a Check and is targeting multiple Invoices (unrelated to each other). Is there a way to just apply the Money to the Credit Memo? Epicor is always under the impression I am applying a Credit Memo to an Invoice, not to a Customer “Future Credit to be used as they please, like a coupon”.
What do you mean by “both invoices”. Is the other Invoice the previous one that may have been paid in full? Since this is an UNAUTHORIZED (not agreed upon shortpay) they won’t get a Credit Memo, will it re-open the previously fully paid Invoice and allow us to remove 60 of the payment?
2.1 Example Scenario: This happens sometimes when we sell something to let’s say ABC Corporation, they received it, they paid it in full… Then they inspected it and felt like the quality was bad, then they will short-pay us on a “Future” Invoice, or they might attempt to take a rebate before it was pre-authorized. We do not want to short-pay an “unrelated” Invoice just because it happens to be on the same Check.
Yes the other plant has seperate AR.
I might have confused you with the word “Credit Card transaction” its basically a Vendor “PayPal” or “Credit Card Bank” for example.
4.1 Example: This could be a Customer Return, they gave us the stuff back, we gave them their money back. We issued a Credit Memo (undoing sale). We need to apply the Negative Cash Receipt to the Credit Memo.
4.2 What do you mean by The credit memo has no effect?
This one has no credit memo.
5.1 Example: This could be a Credit Card Dispute (Unauthorized). We will eventually determine if we need a Credit Memo, or reach out to the Customer to ask for payment.
When I say PayPal, PayPal sends us a Check and the Remittance Lines may be for multiple customers, various invoices.
There are two remittance lines, I failed to mention that each remittance line is for a different Invoice… So sometimes a Customer sends a Check and is targeting multiple Invoices (unrelated
to each other). Is there a way to just apply the Money to the Credit Memo? Epicor is always under the impression I am applying a Credit Memo to an Invoice, not to a Customer “Future Credit to be used as they please, like a coupon”.
You receive a single check for $250. The cash receipt would be able to be applied to the $310 invoice and the $60 Credit Memo. There should be no problem doing this with a cash receipt.
What do you mean by “both invoices”. Is the other Invoice the previous one that may have been paid in full? Since this is an UNAUTHORIZED (not agreed upon shortpay) they won’t get a Credit
Memo, will it re-open the previously fully paid Invoice and allow us to remove 60 of the payment?
2.1 Example Scenario: This happens sometimes when we sell something to let’s say ABC Corporation, they received it, they paid it in full… Then they inspected it and felt like the quality
was bad, then they will short-pay us on a “Future” Invoice, or they might attempt to take a rebate before it was pre-authorized. We do not want to short-pay an “unrelated” Invoice just because it happens to be on the same Check.
Did they do an RTV? Did you receive the product back? If it was a quality issue, there should be an RMA created and processed. Then a Credit Memo would be created to the customer. Now
you can process the payment.
As a business process I would take the check and short pay the invoice. Now you still have a balance on the $310 invoice of $60. Then discuss the situation with the customer. I believe
the RMA process would be in order.
Customer pays $250. There are two remittance lines: $310 and (60). There is an open invoice for $310. The (60) does not belong to this plant. Another plant needs the negative
cash (perhaps to apply to a credit memo on the other plant). Does the other plant have a separate AR?
Yes the other plant has separate AR.
The customer is in both AR’s? Something is wrong here because the AR account is tied to the customer, so it should not be possible to have one customer with multiple AR’s unless they are not just one customer.
Customer pays $250. There are two remittance lines: $310 and (60). There is an open invoice for $310 and an open credit memo for (60). In cash receipts the cheque amount is entered as 250 and under the Allocate tab the cheque is applied to the open invoice and the open credit memo.
Customer pays $250. There are two remittance lines: $310 and (60). There is an open invoice for $310. There is NOT a credit memo. The (60) is an unauthorized deduction related to an invoice that had previously been paid in full on a prior payment. The deduction is not related to the open $310 invoice. In cash receipts the cheque amount is entered as 250. Then create a debit note by using the New Debit note option in the cash receipts for 60. This makes the unapplied amount to 310 which is applied to the open invoice. This will clear the 310 invoice and leave an open debit note on the account which can be applied to a future credit note.
Customer pays $250. There are two remittance lines: $310 and (60). There is an open invoice for $310. The (60) does not belong to this plant. Another plant needs the negative cash (perhaps to apply to a credit memo on the other plant). We do not have multi plant so cannot say for sure, but should be possible to handle either as 1 or 2 above since in one company there is only one customer account for multiple plants. If there are separate customer accounts then you can use the National Account functionality in Epicor.
A PAYPAL or Credit Card transaction is negative. There is an open credit memo. In Epicor there is the following functionality. It is described in the help and I am giving just a section of it from the manual.
Cash Receipts Groups for Debit Notes
You can limit a cash receipts group so that it will only process debit notes. This will let you quickly enter, process, and then post these transactions.
This feature is set up through two programs - Bank Account Maintenance and Cash Receipts Entry.
Once the debit note is created and posted, it can be applied to the open credit note.
A PAYPAL or Credit Card transaction is negative. There is NOT a credit memo. The deduction is currently unauthorized but may inspire us to create a credit memo after deliberation. – Same as 4 above, except the debit note will be applied once the credit note is create.
All the above transactions are done in Cash receipts Entry.
We’ve also run into this problem and are hoping that it’s an item that gets further review/attention, as they are not isolated occurrences. It would be nice to have the option to post negative receipts. Our company has Plant A and Plant B. Some of our customers combine payments for both plant locations on one remittance (ex: $500). The overall payment is positive, but for the payment for Location A, the credit memos taken (ex: -$150) are greater than the invoices paid (ex: $50), resulting in a negative receipt (ex: -$100). Epicor will not allow a negative receipt posting for Location A, but we are able to post the $600 for Location B. Suggested solutions in the past were: just wait until they make another payment so you can post it -OR- use journal entries to write off the credit memo and correct the cash account.