Postbilling and Debit/Credit Memo Entry

Postbilling

Postbilling is the process of creating an invoice without first entering an order.  Postbilling is typically used when you do not need to reserve inventory or control backorders, but want to record the sale, update sales statistics, and create an invoice.  Postbilling could be used for over-the-counter sales.

Debit/Credit Memos

Debit and credit memos are used to make adjustments to a customer's account.  Billing errors and returned items are examples of transactions executed using debit and credit memos.  By issuing a credit memo through the Postbilling and Debit/Credit Memo Entry conversation, you eliminate the possibility of double booking and you guarantee that all transactions will be processed correctly.  You can also print the document to send to the customer.

Two separate reason codes must be defined for debit and credit memos.  These are defined on Reference File category 432, where reason/adjustment codes are defined. Each code either reduces or increases inventory.  A reason code cannot execute both.

Postbilling and Debit/Credit Memo Entry Conversation

This conversation allows the user to create customer invoices, debit memos, credit memos, and cash sale invoices without previous entry of an order.  Accounts receivable balances are updated, and open items are created using entered quantities and price information.  You may also generate installment payments for an invoice based on the payment terms code associated with the invoice.  A bill of exchange will be automatically generated for the invoice with a bill of exchange payment type if consolidated invoicing is not being used, the customer is not paying on a statement basis, and the open amount is greater than zero.

Because the Postbilling and Debit/Credit Memo Entry Conversation performs order entry and billing in the same conversation, order maintenance is not applicable.  Once an order has been entered, credit or debit memos provide the only means for correcting errors.  This also applies to shipped and billed orders.

     Key Features of Order Processing Methods.