Vendor revised invoice received today, for which purchase order PO already invoiced on 11/1/2015. Quantity transferred to ABC warehouse and sold out.
Variance is as follows
| Quantity | Unit | Unit price | new price | new amt | Net amount |
|---|---|---|---|---|---|
| 192.00 | TR | 41.95 | 44.95 | 8,630.40 | 8,054.40 |
| 123.00 | TR | 27.95 | 29.65 | 3,646.95 | 3,437.85 |
What would be the most suitable and practically applicable action to give effect for the revised invoice ?
You can use miscellaneous charges approach. Charges can be added to the posted invoice and if you run inventory recalculation/closing, it will also update the inventory cost of the related SO which consumed that inventory. In the charges setup, you can but debit to the ledger account and credit to vendor.
The other option is reversing the PO but probably you can’t mark that transaction anymore for reversal, since that lot is already consumed.
Adjustment entries can be made, but that will not impact inventory sub-ledger balance.
Pranav…