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How to use Credit Note against inventory PO when quantities invoiced were correct, but unit price was incorrect

  • 1.  How to use Credit Note against inventory PO when quantities invoiced were correct, but unit price was incorrect

    Posted Jul 06, 2021 11:33 AM
    Hey all.

    Our AP clerk processed an inventory invoice in which the quantities invoiced were correct, but the PO unit price was higher than the Vendor invoice, resulting in an open invoice amount is ~3000 higher than it should be.

    Po line details showing quantity and unit prices


    In reviewing the credit note feature for D365, this process seems to reverse the quantity which we do not want to do.

    What is the best approach for creating a credit for this vendor so that, upon payment, the net amount paid will be correct?

    Status of the PO = "Invoiced"
    Status of the Invoice = "Open"

    I am probably overthinking this one.

    Your help is appreciated! Have a great day.

    #D365
    #AccountsPayable
      ​​​

    ------------------------------
    Michele Foster
    ERP Functional Manager
    Coldwater International, LLC
    Fort Lauderdale FL
    ------------------------------


  • 2.  RE: How to use Credit Note against inventory PO when quantities invoiced were correct, but unit price was incorrect

    TOP CONTRIBUTOR
    Posted Jul 07, 2021 01:26 AM
    You potentially have 2 related, but distinct issues at this point:

    1. Unless your costing method is Standard Cost, your inventory value is incorrect.

    2. Vendor balance is incorrect.

    As you specified you do not want to reverse the whole PO invoice/PO receipt, and re-enter the whole thing from scratch correctly, you will probably need to do 2 separate transactions to update both issues.

    Typically fixing inventory value will be done by releasing all the received inventory in this case (using movement journal, for example), and bringing it back in with the correct cost.

    In parallel you can create a vendor credit/debit note in order to fix the vendor balance.

    ------------------------------
    Zvika Rimalt
    Functional Consultant
    Vancouver BC
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  • 3.  RE: How to use Credit Note against inventory PO when quantities invoiced were correct, but unit price was incorrect

    Posted Jul 07, 2021 08:47 AM

    Thank you, Zvika. I suspected that the inventory value would be impacted by this issue. So your guidance is very helpful here.

     

    Thank you,

     

    Michele Foster | ERP Functional Manager, Coldwater International LLC | m: 925.575.4906

     






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