Reporting - Correct Accounts payable/receivables when a Credit is applied and Contact name is changed
The Accounts payable/receivable Report is incorrect if the contact name has changed. As described to me by a Xero support technician:
If you edit a contact on an invoice, credit note, prepayment or overpayment that has a payment applied to it, it may affect the balance of the customers Activity Statement. This is because the transaction and corresponding payment are no longer associated to the same contact.
For example, if you create an invoice for Customer A then apply a credit note to that invoice, the Activity Statement for Customer A will show the net balance of the invoice amount less the credit note.
But, if you change the contact on the invoice to Customer B:
the Activity Statement for Customer A will still show the credit note amount, but it won't reflect the invoice amount as the invoice is now linked to Customer B.
the Activity Statement for Customer B will reflect the invoice amount, but not the credit note amount, as this is still linked to Customer A.
To make sure the Activity Statement shows the correct balance, you need to edit the contact on any associated payments or credit notes when changing the contact on a transaction.
This work around is generally useless as prior periods will be locked to prevent changes to the accounting records.
Philip Owen
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