Ledger Interface for Credit Notes, Debit Notes, PRN's and SRN's

Transactional

In Ledger Interface a transactional ledger interface takes a value label, for example, one holding the net value of a line, and posts it to a specified account. It is specified as either a debit or credit posting. This ledger interface is linked to a transaction type, and a stage within that transaction type. This enables you at the receipt note entry/matching stage, for example, to debit the inventory and credit the supplier accounts.

The value labels are calculated by formulae. Most value labels are normally calculated by multiplying the quantity on the line. For example, the value label holding net value is calculated by multiplying the line quantity by the unit price. The quantity is always positive in a normal purchase order or sales order.

On a purchase return note, sales return note, credit note or debit note, because you are doing the opposite of a purchase order or sales order, the quantity is held as a negative value. There are a number of possible scenarios for correct processing:

• You want to use the same formulae as a normal purchase or sales order. Hence all value labels are negative because the quantity is negative. For example, the negative quantity multiplied by the positive unit price gives a negative net value, value label.

• If the same ledger interface is used as a normal purchase or sales order, the system determines that the value label is negative and automatically switches the debit or credit marker to the opposite, to provide the correct postings. In this case a reversal is posted to the ledger.

• You want to post to the same ledgers as for a normal sales or purchase posting, but do not want to show negative value labels. In a formula for a purchase return note, sales return note, credit note or debit note, you can multiple the value label by '-' minus 1 to give a positive value label. To ensure correct postings, you cannot use the same ledger postings as for a normal purchase or sales order because the debit or credit will be incorrect. To ensure correct postings, a new ledger interface is required with the credit and debit markers transposed to the normal ledger posting.

• If you want to post to different ledgers, then a new ledger interface is required. You must specify the credit and debit markers and the formulae to be positive or negative as required.

Inventory

The inventory type of ledger interfaces do not have the consideration of positive and negative values because they do not look at value labels. They look at the inventory costs (standard, latest, weighted average, defined average, and the six user defined costs) on the receipt or issue, or on the item. These costs are created when the lines are processed and inventory costing functionality used. These values are always positive. The debit and credit markers within the Ledger Interface are then set as you require because the inventory costs are always positive.