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Former Member
Feb 04, 2009 at 02:26 PM

Advice me on defere credits


Dear All,

Please advcie me how to do settinggs for deferred credits in below scenario.

Client bought 2 Airconditoners. bigining of this year invoice is created to client for AMC for full year.

At the end of January client gave one month notice that they wish to cancel AMC on 1 A.C so they were going to short pay the invoice.

Now, invoice reflects 2 x 400 = 800/month x 12 months = 9600 (plus applicable tax)

auto-deferred the AMC to release monthly as...800

Now client is short-paying due to cancellation

1 x 400 = 400/month x 10 months = 4000 (plus applicable tax)

If we process a credit for short payment then revenue hit fully but have not recognized the revenue yet as it is releasing 800/month.

Kinldy provide me some inputs on this.