• From: Estonia
  • Registered: 04/21/2019
  • Posts: 22

Topic: credit note for services

I entered a correct invoice. While entering the next one, I didn't pay attention that the last customer was chosen and didn't choose the correct customer. And I entered the invoice for an incorrect customer. Now, I needed to issue a credit note to cancel the incorrect invoice. For "Credit Note Type", I didn't change the default option "Items Returned to Inventory Location". All the items were services. The result was awkward:
Journal Date    Account Code    Account Name    Dimension    Debit    Credit    Memo
11/23/2018    6010    HaVaTeK Revenue    1 HaVaTeK 2018 Vägi    30.00       
11/23/2018    5200    HaVaTeK Expenses    1 HaVaTeK 2018 Vägi        16.20   
11/23/2018    1510    Inventory         16.20       
11/23/2018    6010    HaVaTeK Revenue    1 HaVaTeK 2018 Vägi    16.20       
11/23/2018    6010    HaVaTeK Revenue    1 HaVaTeK 2018 Vägi    0.05       
11/23/2018    1200 00012    Accounts Receivables: RAJAPUU             46.25   
Total        62.45    62.45   
For "HaVaTeK 2018 Vägi", an expense of 16.20 is registered and the same amount was debited to inventory. How can a service be an inventory at all? And why did it happen only for one row, not the first and third row?

  • rafat
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  • From: UAE, Dubai
  • Registered: 11/28/2017
  • Posts: 540

Re: credit note for services

@peacecop kalmer

Of course you could have voided the invoice and all should be fine and it is the easy way and the system will take care of the rest.. that is because the invoice is for the wrong customer.

Now we are considering the case that you really wanted to do a Credit Note for a customer where the invoice is right but you want to credit the customer for some other reason.

What I can see is that your Item expenses is pointing to an account code 5200 (which I dont know what) that seems to be not a Service Item but one that is connected to Inventory account (unlike Services).

I suggest that you review that Item in Items and Inventory..and make sure that its not connected to Inventory Account.

I run a services company as well.. did not face this.. I could be wrong.

Tell us what you find. Good Luck

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  • From: Estonia
  • Registered: 04/21/2019
  • Posts: 22

Re: credit note for services

For the item "court_airok_out_1.5", I have set "Sales Account: 6010 HaVaTeK Revenuse" and "C.O.G.S. Account: 5200 HaVaTeK Expenses". For service items, the field "C.O.G.S. Account:" mustn't exist at all. Anyway, it's set and nothing is set to inventory as that field isn't visible because the item is a service item. I can't even change the type of the item as it's greyed out.

  • rafat
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  • Registered: 11/28/2017
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Re: credit note for services

Hi,

I would ask more experienced guys around the forum to help. What COA you are using and which version of Fa as well..that will be helpful.

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5 Reply by poncho1234 (edited by poncho1234 06/09/2019 05:19:07 pm)

  • From: Colombia
  • Registered: 12/29/2014
  • Posts: 627

Re: credit note for services

@peacecop kalmer:  can you confirm that for the service item, you selected both Category: AND Item Type: as service, as this screenshot shows

If the Category is not service, go to Items & Inventory->Item Categories and see if the category 'Type' you selected (4th column from the left) is Service

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  • From: Estonia
  • Registered: 04/21/2019
  • Posts: 22

Re: credit note for services

I don't know how to tell you what COA I'm using as I can't remember what it was called originally. The default one didn't work as I had to find another one. However, even for that, the profit and loss statement is screwed up.

The version of FA is 2.4.6.

The service item "court_airok_out_1.5" has both its category set to "Services" and type set to "Service". Even in your picture, there's "C.O.G.S."-field visible.

  • rafat
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  • Registered: 11/28/2017
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Re: credit note for services

@peacecop kalmer

You dont need to worry about "C.O.G.S" its your cost account for your GOODS or even SERVICES.. You have a cost for the services your provide..Dont you? This is the account then.. unless you are a non profit organization and the cost of the services are not relevant. What you call it is up to you.

Now I am worried about your COA.. did you change it? What Changes you have done can lead us to a solution.

I know its difficult to remember but you can do it..somehow.

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  • rafat
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Re: credit note for services

@peacecop kalmer

Just a note to get the used COA

Banking and General Ledger =>General Ledger Reports =>Chart of Accounts=>Display Chart of Accounts

Display it here if you can.

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  • From: Estonia
  • Registered: 04/21/2019
  • Posts: 22

Re: credit note for services

Chart of Accounts
Print Out Date: 06/12/2019 08:18 pm +0200 GMT frontaccounting.tennis24.ee
Fiscal Year: 01/01/2018 - 12/31/2018 (Active) peacecop kalmer: Page 1
Account Account Name Account Code Balance
1 Assets
1 CURRENT ASSETS
1060 Checking Account
1065 Petty Cash
1200 Accounts Receivables
1201 Grants Receivables
1205 Allowance for doubtful accounts
2 INVENTORY ASSETS
1510 Inventory
1520 Stocks of Raw Materials
1530 Stocks of Work In Progress
1540 Stocks of Finsihed Goods
1550 Goods Received Clearing account
3 CAPITAL ASSETS
1800 Tennis court of Harku borough
1805 Accum. Amort. -tennis court of Harku borough
1820 Office Furniture & Equipment
1825 Accum. Amort. -Furn. & Equip.
1840 Vehicle
1845 Accum. Amort. -Vehicle
2 Liabilities
4 CURRENT LIABILITIES
2100 Accounts Payable
2110 Accrued Income Tax - Federal
2120 Accrued Income Tax - State
2130 Accrued Franchise Tax
2140 Accrued Real & Personal Prop Tax
2150 Sales Tax
2160 Accrued Use Tax Payable
2210 Accrued Wages
2220 Accrued Comp Time
2230 Accrued Holiday Pay
2240 Accrued Vacation Pay
2310 Accr. Benefits - 401K
2320 Accr. Benefits - Stock Purchase
2330 Accr. Benefits - Med, Den
2340 Accr. Benefits - Payroll Taxes
2350 Accr. Benefits - Credit Union
2360 Accr. Benefits - Savings Bond
2370 Accr. Benefits - Garnish
2380 Accr. Benefits - Charity Cont.
2400 Deferred Revenue
5 LONG TERM LIABILITIES
2620 Bank Loans
2680 Loans from Shareholders
6 SHARE CAPITAL
Chart of Accounts
Print Out Date: 06/12/2019 08:18 pm +0200 GMT frontaccounting.tennis24.ee
Fiscal Year: 01/01/2018 - 12/31/2018 (Active) peacecop kalmer: Page 2
Account Account Name Account Code Balance
3350 Common Shares
7 RETAINED EARNINGS
3590 Retained Earnings - prior years
3 Income
13 OPENING BALANCE
9000 Opening Balance Equity
14 PROJECT REVENUE
6010 HaVaTeK Revenue from Sales
6020 HaVaTeK Revenue from Grants
8 SALES REVENUE
4010 Sales
9 OTHER REVENUE
4430 Shipping & Handling
4440 Interest
4450 Foreign Exchange Gain
4500 Prompt Payment Discounts
4510 Discounts Given
4 Costs
10 COST OF GOODS SOLD
5010 Cost of Goods Sold - Retail
5020 Material Usage Varaiance
5030 Consumable Materials
5040 Purchase price Variance
5050 Purchases of materials
5060 Discounts Received
5100 Freight
11 PAYROLL EXPENSES
5410 Wages & Salaries
5420 Wages - Overtime
5430 Benefits - Comp Time
5440 Benefits - Payroll Taxes
5450 Benefits - Workers Comp
5460 Benefits - Pension
5470 Benefits - General Benefits
5510 Inc Tax Exp - Federal
5520 Inc Tax Exp - State
5530 Taxes - Real Estate
5540 Taxes - Personal Property
5550 Taxes - Franchise
5560 Taxes - Foreign Withholding
12 GENERAL & ADMINISTRATIVE EXPENSES
5610 Accounting & Legal
5615 Advertising & Promotions
5620 Bad Debts
Chart of Accounts
Print Out Date: 06/12/2019 08:18 pm +0200 GMT frontaccounting.tennis24.ee
Fiscal Year: 01/01/2018 - 12/31/2018 (Active) peacecop kalmer: Page 3
Account Account Name Account Code Balance
5660 Amortization Expense
5685 Insurance
5690 Interest & Bank Charges
5700 Office Supplies
5760 Rent
5765 Repair & Maintenance
5780 Telephone
5785 Travel & Entertainment
5790 Utilities
5795 Registrations
5800 Licenses
5810 Foreign Exchange Loss
9990 Year Profit/Loss
15 PROJECT EXPENSES
5200 HaVaTeK Expenses

  • rafat
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  • From: UAE, Dubai
  • Registered: 11/28/2017
  • Posts: 540

Re: credit note for services

@peacecop kalmer

I tried all possible combination and could not reproduce the issue in my installation..unless the item in linked to an Inventory Account.

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