Hi Seb
Credit notes are usually issued for specific reasons eg return of faulty item/item no longer required so it is best practice to link the credit note to the original invoice, but for ease some will link an eventual payment to a few invoices and any related credit notes between certain dates (usually based on a statement received). The former is probably tidier.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I noticed that the credit note takes down the balance of say a customer and did wonder why there was a need to match a credit note to a invoice, do they just stay in limbo until they are matched? I bet there is a report which shows outstanding credit notes and POAs.
Hi Seb
Yes credit notes and POA would just stay in limbo until matched properly and the account can get very messy if you let it.
If you cannot match via a remittance I would suggest its best practice to make contact the other party and agree what can be linked, even if it leave a partial balance on one invoice moving forward. It pays to keep on top of things like that. There are several reports that can show the position - customer statements that you send out is one, but a detailed debtor/creditor report is another. Plus you can generally view the activity on an account and click an option to show just the 'o/s' items and dump that into excel. Always ways and means and depends a lot on the software as to where you look for the info.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
