Inside SAP Business One we can create sales and purchasing documents with negative totals. Why would we want to do that? Say for example that a customer is making a new purchase but at the same time would like to return an item previously purchased. Instead of posting an A/R invoice and a credit memo, you can conveniently just create one document that you’ll enter the items the customer is purchasing at a positive value, and enter the returned items as a negative value.
Note: While this is a convenient method, do consider whether it would be wiser for your accounting transparency to post two separate documents.
You can use the negative total method for these documents:
- A/R and A/P invoice
- A/R and A/P credit memo
- An A/R delivery
- An A/R return
- An A/P goods receipt
- An A/P goods return
Inventory valuation behavior of documents with negative totals:
|
Type of Transaction |
Similar Transaction |
Inventory Account |
Balance Account |
Profit & Loss Account |
|---|---|---|---|---|
| Goods receipt P/O | Goods return | Inventory | Allocation | |
| Goods return | Goods receipt P/O | Inventory | Allocation | |
| A/P Invoice | A/P credit memo | Inventory | Vendor | Negative Adjustment Account, Price Differences Account |
| A/P credit memo | A/P invoice | Inventory | Vendor | Negative Adjustment Account, Price Differences Account |
| Delivery | A/R return | Inventory | COGS | |
| Return | Delivery | Sales Return | COGS | |
| A/R invoice | A/R credit memo | Inventory | COGS | |
| A/R credit memo | A/R invoice | Sales Return | COGS | |
| Goods receipt P/O based on goods return | Goods return based on goods receipt P/O | Inventory | Allocation | Negative Adjustment Account, Price Differences Account |
| Goods return based on goods receipt P/O | Goods receipt P/O based on goods return | Inventory | Allocation | Negative Adjustment Account, Price Differences Account |
| A/P invoice based on goods receipt P/O | Credit memo based on goods return | No inventory transaction | ||
| A/P credit memo based on goods return | A/P invoice based on goods receipt P/O | Vendor, Allocation | Price Differences Account, Negative Adjustment Account | |
| A/P credit memo based on A/P invoice | Invoice based on credit memo | Inventory | Vendor | Negative Adjustment Account, Price Differences Account |
| Delivery based on return | Delivery based on return | Inventory | COGS | Negative Adjustment Account |
| Return based on delivery | Return based on delivery | Sales Return | COGS | Negative Adjustment Account, Price Differences Account |
| A/R invoice based on delivery | Credit memo based on return | No inventory transaction | ||
| A/R credit memo based on return | A/R invoice based on delivery | No inventory transaction | ||
| A/R credit memo based on invoice | A/R invoice based on credit memo | Sales Return | COGS | Negative Adjustment Account, Price Differences Account |