Credit notes from a Purchase order and affect on stock!

Finance and Operations/AX User Forum
1

Hi all,

I have a question on credit notes as per my title. When a credit is created via a purchase order (functions->create credit note) a credit is created against the item line and it DOES effect the stock numbers.

How do you post a credit to correct a value via the purchase order without affecting the stock numbers?

All help greatly appreciated!

Thanks

Finn

2

Sorry for not understanding your post…

Which value you are trying to Corret???

3

Hi Kranthi

Ok an Invoice comes in for an item with quantity 1 for example. The price on the invoice is £20 but should be £10. When you create a credit note against the item line via the purchase order the stock is affected. Ax efectively creates a negative purchase order which takes the stock out as it would usually add it.

How do we get round this? How do we accept the financial credit value but leave the stock alone.

4

For that you can reverse the purchase order and can repost it…

5

But what if you have received a credit note? surely you want to register the invoice amount even if incorrect and register the credit note?

6

It depends what you want to do.

  1. You receive a purchase order for $100 this is reflected on the invoice. You then sell it. You then tell the supplier the price should have been $50 - they agree and sent you a credit note for $50. Ideally they should give you a credit for $100 and an invoice for $50, but few do. So you can load two new lines on the purchase order. One returning the purchase for $100 and one receiving it for $50. This is an in and out stock transaction, leaves the original invoice in place and the posting of the two lines will produce a credit note linked to the purchase order. The issue with this is that the cost of sale for the first line is not correctly reflected, it all comes out in the wash, but it depends upon your costing method and reports.

  2. Add a service line to the purchase order at zero cost. Add a miscellaneous charge and apply it to the first line. The miscellaneous charge reflects the credit. This will adjust the cost and produce a credit note.

  3. I have not tried this one, but I beleive you can add a purchase invoice with a miscellaneous charge and apply it to the original purchase order - much like a third prty landed cost allocation.

7

All veyr helpful Adam. I like the second option, seems slicker. But why would you add both a service and miscellaneous item line. Couldn’t you just add a misc service (no stock) item line as a negative value?

Thanks for your help.

8

You could but it would not be considered as part of the items inventory value - because a separate line is not related to the item, so if you book it in for $100 and receive a credit of $50 and process it as a separate line then the COGS, Margin and Inventory Valuation will always be $100.