Avoiding Invoice and Credit Note combinations appearing on Client A/c Statements
1 Avoiding Invoice and Credit Note combinations appearing on Client A/c Statements
After issuing invoice and credit notes combinations for a variety of internal reasons, if the original invoice has not been sent to the client we might want the invoice and credit note combination not to appear on the clients statement.
The obvious way is to simply not enter (or if generated by a NEOSYS billing system, delete) the pair of documents from the journals prior to posting. However it is strongly advisable to post all invoice numbers (whether generated by NEOSYS or not) otherwise auditors may question the reason for the gap in the invoice number sequence.
Another solution is to simply allocate the credit note to the invoice immediately so that neither show on the clients statement of outstanding items. However if and when the client requires a statement of all movements on their account then the offending invoice and credit note will still appear.
The best way to to modify the client a/c column in the journal for the invoice and credit notes to be a client suspense or "sundry" client account instead of the true client a/c number. This way there will be a record of the invoice number but the net balance will be zero and there will be no entries showing on the clients a/c. To do this you can either create a dummy client a/c with a suitable name like "Client Suspense" or use an existing general purpose client a/c like "Sundry Clients". You cannot use the normal suspense account (ZZZ999) here.