Hello,
Can someone point me in the right direction to correct a posted AP invoice?
The invoice was posted and 1 line item has an incorrect price. Is there a way to do a free text invoice in AP just like in AR?
Thanks in advance.
-y
The procedure that is usually used to correct invoices is to a) post a negative quantity line to create a credit b) settle the original invoice with the credit c) re-enter the line with the correct price. Please find step-by-step instructions below. Hope that will solve your problem :-).
Karin Espelage
Independent Dynamics AX consultant
www.max-ax.com
-
Reverse the original line by adding another purchase order line to the order with a negative quantity (use the same item, the same price but a negative quantity).
-
Post the invoice for the line with the negative quantity to generate a credit (suggestion: use the original invoice number with “-COR” at the end)
-
Next you have to settle the invoice that you posted originally with the credit that you created with the correction line. To do that go to Functions (button on the purchase order header) → Open transactions editing. What you see in this screen depends on whether automatic settlements are enabled or not (“settlement” check box on the vendor group posting profile). If you don’t see open transactions for the invoice and for the invoice correction that you posted then “automatic settlements” are enabled and you don’t have to do anything further. Go directly to step 5. If however you see 2 open transactions here (one for the original invoice and one for the invoice correction) then do the following:
-
Go to the Vendors file and select the vendor. Select the “Functions” button and open the “Open transactions editing” screen (note: it’s the same screen as before but it has some more functionality). “Mark” both transactions by ticking the “Mark” check box. Press the “Update” button. Now the original invoice will show the balance (if any) and the credit transaction will be removed.
-
Enter a new line on the purchase order for the item with the correct price. Post the invoice (suggestion: use the original invoice number with a “-2” extension or something that will let you easily identify that this was an internal correction).
-
When you pay the invoice make sure that the correct invoice lines are settled.
One last suggestion: It is a good idea to write a procedure for invoice corrections so that they are handled the same way each time and they are easier to audit.
I believe what Karin has said that is the best way to do. but if you don’t need to keep track of correct rate or all the transaction related po against one invoice then you can do it through some rectification journal with proper reference in invoice, which will be Debit/Credit Note in nature.
Because purchase order means an external document, which has been given after audit or approval. So, better to keep the same intact and prepare one adjustment entry for it.
I assume by “rectification journal” you mean posting a credit in the invoice journal for the difference amount. One problem with doing it that way is that that won’t correct the item value. When the item is sold or consumed in production that might impact your revenues. How significant that is depends of course on the item value and the price difference.
Yes dicsion is to be taken on the basis of case to case.