Hi! Is it really possible to correct an erroneous purchase invoice? 1. Create a new item. 2. Post a PO as receipt&invoice with value 0. 3. Post a PO as receipt&invoice with value 100. 4. Post Sales Invoice in 10 parts, for example ->COGS will be 0 5. Now I notice that PO1 was wrong and unnecessary. I’d like to correct (delete) PO 1 and have correct COGS (100), but it’s not possible to create Credit Notes for 10,20,100… Sales Invoices. I need an urgent solution. Thanks Soya
Hi Soya What do you mean by the statement
quote:
it’s not possible to create Credit Notes for 10,20,100… Sales Invoices.
Could you clarify this for me. To get the COGS correct on the sales order you will need to credit the sales order, rectify the position in your inventory with regards to the “unnecessary” purchase order and then reload the sales order and ship it and invoice it. I think this may help but could you explain what you want in a bit more detail if it does not. Sorry [V]
Hi Steven, Let me explain my problem! You have the following entries: Posting date Type Qty Amount COGS 01.10.2002 Purchase 100 0 01.10.2002 Purchase 100 100 03.10.2002 Sales 1 2 0 05.10.2002 Sales 1 2 0 08.10.2002 Sales 1 2 0 10.10.2002 Sales 1 2 0 12.10.2002 Sales 1 2 0 13.10.2002 Sales 1 2 0 15.10.2002 Sales 1 2 0 16.10.2002 Sales 1 2 0 and so on Today is the 1st of November. You print an Item valuation report and find 1st purchase entry was unnecessary. It was erroneous order or another item … You have to “delete” this entry anyway. But you can NOT credit 10-20 sales orders physically, can you? I think it’s an everyday problem. Waiting for a solution Soya
Steven was correct. It isn’t pretty, but it can be done. To expand, the steps you will have to go through are: 1) Credit All Sales Orders. This will leave Item Ledger Entries for each Sales Order Credited. We are going to apply these later, so the Costs aren’t really important. 2) Credit your Purchase Order. You will have to put a line on the Credit for each Sales Order and then specify which Item Ledger Entry that will apply to (corresponding Credit Line). 3) Check that all the Item Ledgers are applied correctly. 4) Recreate your Sales Orders. They should now ship against the correct purchase. This might be an everyday problem, but the further you get along the process it gets harder to correct. Hope this helps.
Hi! It’s about a wholesale company. They have 200 sales invoices and 50 negative adjmts/mounth. So, it dosn’t possible to credit 200 invoices. Any other solution? Thanx Soya
Hi Soya, I’m afraid there is no possibility to correct the wrong invoice. The only thing you can do is to create a purchase credit note. And then - you have to wait until the wrong item ledger entrys are closed. From the financial view the following will happen: - after the purchase the stocks are to low (value) - if the wrong entrys will be closed the COGS are to low If this is a problem you might use the Item Journal. In this case don’t create a purchase credit note. Make a negative adjustment for this item: - only the Remaining Quantity of the wrong p. invoive - with value = 0 Then the accounting people should correct the COGS for for the items already sold (stocks- / COGS+). Hope this helps bye Andre
Hi André, What do you mean by “correct the COGS”? Should we correct COGS GLaccount manually? Do you think it is an elegant solution? I don’t think so. It gives a difference between item and G/L statistics. MfG Soya
Hi Soya I think that the suggestions here are in an attempt to correct an anomaly. I know going through the process can be long-winded, but this is the price paid for bringing in stock at zero cost. Presumably you will not bring everything in at zero, sell it and then have to correct the unit cost of every item sold? So you will not be crediting 200 invoices a month, just the odd one, and the more the end user has to go through this process the more disciplined they will become at receiving stock at the correct cost negating the need to fix the issue anyway.
Dear Soya
quote:
Originally posted by soya
… What do you mean by “correct the COGS”? Should we correct COGS GLaccount manually? …
Yes in this case (my 2. suggestion) you will have to!
quote:
Originally posted by soya
… Do you think it is an elegant solution? …
I think this is the most elegant (and of course possible) solution if you cant wait until all wrong entries are closed [8D]. PS We work with Navision since 1994. In this time we had such an error again and again. It happens sometimes. Sometimes with 0, sometimes with a wrong value. You can’t avoid it always. bye Andre
Hi, Which version do you use??? 1.In attain you can make revaluation of purchase entry from revaluation journal. or 2. Post another invoice with item charge which is assingned to your wrong invoise line. Both of it will change positive entry costs and with batch jobs you will change COGS. If you use financials, you haven’t any other possibilities except credit all sales invoice, then credit purchase invoice and so…
Hi Gedas I may be misunderstanding the purpose of the revaluation journal, but doesn’t this affect the current inventory levels, rather than the COGS with the sales already processed? I haven’t tried the Item charges, interesting theory. Does it work? [:D]
Hi Gedas, we use Attain 3.01B.
quote:
Originally posted by SBWEAVER
… I may be misunderstanding the purpose of the revaluation journal, but doesn’t this affect the current inventory levels, rather than the COGS with the sales already processed? …
Steven you are right. Unfortunately you (we) can’t correct item ledger entries which are already sold [:(]. bye Andre
Hi Gedas,
quote:
Originally posted by Gedas
Hi, Which version do you use??? 1.In attain you can make revaluation of purchase entry from revaluation journal. or 2. Post another invoice with item charge which is assingned to your wrong invoise line. Both of it will change positive entry costs and with batch jobs you will change COGS. If you use financials, you haven’t any other possibilities except credit all sales invoice, then credit purchase invoice and so…
You are right …partly! With help of item charge you can correct a purchase entry with wrong unit cost. But! You can’t “delete” a wrong, unnecessary purchase entry (and can’t correct the GOGS of applied sales entries). Greetings from Budapest Soya