Setup:
1.      Create a credit note A for the customer – Amazon $10,000

2.      Create an invoice B for the customer - Amazon. $500,000

3.      Create an invoice C for the customer – Amazon $600,000

Workflow and solution:

1. The credit note A is $10,000. Create a debit note for $4000. The credit note A will have a new balance of $6000.

In v15, the debit note is a button.

Notes: For electronic invoicing, there is no requirement to send the debit note document to the government. To ensure compliance with internal processes, it is advisable to utilize a separate journal that prevents the transmission of documents to the government.

2.  Reconcile the credit note A $6000 with invoice C $600,000 by clicking on the ‘ADD’.

3.  The invoice C will have a new balance of $594,000.

4.  Find the credit note A with the first debit note $4000 and unreconciled.

5. Find the original debit note $4000 in the customer invoice. Reset to draft and cancel.

6.  Then credit note A has a new balance of $4000.

7.  Reconcile credit note A $4000 with invoice B $500,000.
Now invoice B has a new balance of $496,000.