A Customer purchased two Items and paid in cash. The ERPNext user created the Sales Invoice including payment. This is appropriate since the issue of inventory, consent to sell and payment are co-temporal.
| Account | Stock Ledger | Debit | Credit |
|---|---|---|---|
| Cost of Goods Sold | $100.00 | ||
| Inventory on Hand | 2 @ $50.00 | $100.00 | |
| Accounts Receivable | $100.00 | ||
| Sales | $100.00 | ||
| Accounts Receivable | $100.00 | ||
| Bank / cash account | $100.00 |
The next day the Customer returned one item and purchased another Item in exchange and paid the difference amount. The ERPNext user has made Sales (Invoice) Return without checking "Include Payment" option as he is not remitting cash to the Customer.
| Account | Stock Ledger | Debit | Credit |
|---|---|---|---|
| Cost of Goods Sold | $50.00 | ||
| Inventory on Hand | 1 @ $50.00 | $50.00 | |
| Accounts Receivable | $50.00 | ||
| Sales | $50.00 |
The ERPNext user created new Sales Invoice for the exchanged Item and collected the difference amount only using the "Include Payment" option.
| Account | Stock Ledger | Debit | Credit |
|---|---|---|---|
| Account | Stock Ledger | Debit | Credit |
| Cost of Goods Sold | $60.00 | ||
| Inventory on Hand | 1 @ $60.00 | $60.00 | |
| Accounts Receivable | $10.00 | ||
| Sales | $10.00 | ||
| Accounts Receivable | $10.00 | ||
| Bank / cash account | $10.00 |
The new invoice is still partially paid since it does not adjust the outstanding amount from the first Sales Invoice. When the ERPNext user goes to Payment Reconciliation and selects the Customer he does not see the original Sales Invoice available for settlement.