Re: [ubl-dev] Invoices, Credit notes, charges, allowances, oh my!

["Roberto Cisternino" <roberto@javest.com>]

> At 2009-07-08 15:42 +0200, Roberto Cisternino wrote:
>> > As I understand it, charges on an invoice increase the amount of the
>> > invoice, and allowances on an invoice decrease the amount of the
>> invoice.
>> >
>> > When a credit note is issued against the invoice, are charges on the
>> > credit note increasing the amount of the credit note (and allowances
>> > decreasing the amount of the credit note), or because it is a credit
>> > note should the use of the two concepts be reversed?
>>
>>absolutely not, Allowance/Charge are a stable meaning
>
> So, then, an allowance is *always* a decrease and a charge is
> *always* an increase in whatever document it is being used?
>
>> > The issue is that cac:AllowanceCharge is context free, and the
>> > definitions are not biasing one way or the other:
>> >
>> >    "An association to Allowances and Charges that apply to the Credit
>> Note
>> >     as a whole."
>> >    "An association to Allowances and Charges that apply to the Invoice
>> as
>> >     a whole."
>> >
>> > My answer was "it can be either way because a community gets to
>> > define which way the allowances and charges are expected for any of
>> > the documents".
>> >
>> > Is there a "best practice" for which way to go on credit notes?
>>
>>I think Allowance / Charges are just used into a classic Invoice.
>
> But what about this scenario:
>
>    I issue an invoice for EUR1000 with a 10% charge which adds EUR100
>    for a total of EUR1100.
>
>    I issue a credit note for EUR100 and need to accommodate the 10% so
>    that the total is EUR110.  Is the EUR10 considered (a) a line item in
>    the credit note, (b) a charge in the credit note, or (c) an allowance
>    in the credit note?

Allowance Charges are details you want show to your Customer as a
justification for a given Amount.

A charge for late payment
A discount

.. but the line item total that is used to calculate taxes (taxable) is
probably including all of these (except in the case there are non-taxable
parts)

basically you show the base (price * quantity) + any variation derived by
business issues, but the total is one... and the Credit Note is a fiscal
document that is not interested into the "details".  You need to indicate
the amount you give back (refund) to your Customer.
Wehn you make a Credit Note you do not apply any discount or charge,
otherwise you may go to visit the County Jail :)
You just need to mention which Invoice Items, their part, or the whole
invoice/es you are going to correct, but referred to totals
(LineExtensionAmount)

As you can note the CreditNote do not have Allowance/Charges at line level
like into the Invoice.

The Allowance/Charge in the root of the CreditNote is a dark side for my
knowledge.

You need to fill up the Line items of the Credit Notes and specify the
LineExtensionAmount and fill a DiscrepancyResponse which is connected to
the UBL-ApplicationResponse -> cac:DocumentResponse to explain the reason
and discrepancy notified to the Seller


>
>>A Credit Note is precisely referred to Amounts specified into one or more
>>Invoices (or part of these) that your business previously issued with
>> some
>>mistakes on amounts or even with no reference to the actual PO received
>> by
>>your Customer.
>>
>>The Credit Note is not referred to a precise Allowance / Charge on a
>> given
>>item but usually is referred to a Line Item total Amount.
>>
>>The important part is to reference exaclty which part of an Invoice is
>>corrected by a Credit Note.
>
> So you think it is (a) in my scenario and that AllowanceCharge should
> not be used in the credit note even though it is available to be used
> in the structures?
>
> Any other opinions from UBL-Dev members?
>
> Thanks for your guidance.
>
> . . . . . . . . . . Ken
>
> --
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-- 
* JAVEST by Roberto Cisternino
*
* Document Engineering Services Ltd. - Alliance Member
* UBL Italian Localization SubCommittee (ITLSC), co-Chair
* UBL Online Community editorial board member (ubl.xml.org)
* Italian UBL Advisor

  Roberto Cisternino

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  skype:  roberto.cisternino.ubl-itlsc

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