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

[jaymuz@optusnet.com.au]

The way I am looking at dealing with this is to create a mapping of document type to:

- whether or not an accounting Debit on the Balance Sheet will be stated as positive or negative on the document, and 
- from whose perspective of the parties to the transaction, with
- defaults.

e.g. 
Defaults:
Invoice | Debit positive | Debit to BS Debt | From Perspective of person being owed debt
Credit Not | Credit positive | Credit to BS Debt | From Perspective of person being owed Debt
etc

Invoice 57
<Sign Mapping>Default
OR
<Sign Mapping>
 <smperspective>etc etc


> Stephen Green <stephengreenubl@gmail.com> wrote:
> 
> I'd say there are two types of credit notes I've been used to
> (and it's along time ago I did this so I'm a bit rusty so don't
> take this a gospel - needs an accounts expert to verify)
> 
> 1. a credit note which reverses the effect of an invoice for one
> or more of its items which were say returned as faulty, etc
> 
> 2. a credit note which cancels one or more invoice(s) entirely
> 
> With 1. the credit note is a reverse invoice so tax has to be
> calculated, etc. In this case all the amounts are written as
> positive and the fact it is credit is clearly denoted. The taxes
> and charges and allowances are all presented the same way
> they were on the invoice.
> 
> With 2. the totals of the invoices are presented and any taxes
> stated but it wouldn't be unusual to hide details like allowances
> and charges as well as goods - a bit like with a statement.
> Sometimes the invoice never existed, sometimes the invoice
> was paid twice so the credit doesn't need the details. Sometimes
> the invoice went to the wrong party so the details need not be
> mentioned, etc
> ---
> Stephen D Green
> Document Engineering Services Ltd
> 
> 
> 2009/7/8 G. Ken Holman <gkholman@cranesoftwrights.com>
> 
> > Here is a question I've received from a user, apologies in advance for 
> my
> > mangling of any terminology.  The wording is mine, so I might mess up.
> >
> > 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?
> >
> > 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?
> >
> > Thanks!
> >
> > . . . . . . . . . Ken
> >
> > --
> > Possible July/August XSLT/XQuery/XSL-FO training in Oakland/CA/USA
> > Crane Softwrights Ltd.          http://www.CraneSoftwrights.com/u/
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> > Video overview:  http://www.youtube.com/watch?v=VTiodiij6gE&fmt=18
> > G. Ken Holman                 mailto:gkholman@CraneSoftwrights.com
> > Male Cancer Awareness Nov'07  http://www.CraneSoftwrights.com/u/bc
> > Legal business disclaimers:  http://www.CraneSoftwrights.com/legal
> >
> >
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