Recording Price Corrections
Use a price correction when a supplier sends an invoice for a change in unit price for an invoice you have matched to a purchase order. You can record a price correction by entering a standard credit or debit memo invoice and then checking Price Correction when you perform matching.
Payables records and updates the invoiced unit price of previously matched purchase order shipment or distributions without adjusting the quantity billed so you can track price variances; Payables also updates the amount billed on the originally matched purchase order distributions.
To record a price increase for a purchase order shipment or purchase order distribution:
1. In the Type field of the Invoices window enter either Standard, PO Default, or Mixed. If you enter PO Default type, Payables prompts you to enter the PO Number, then Payables automatically defaults the Supplier, Supplier Number, Site, and Currency.
3. In the Match to PO window review the purchase order Payment Terms and optionally change the invoice Payment Terms in the Invoices window. Payables uses the invoice payment terms to schedule invoice payment.
4. Adjust the invoiced unit price of a previously matched purchase order shipment by matching a price correction to it. To record a price increase for a purchase order shipment, check Price Correction, enter the Unit Price for the incremental amount of the price correction, and enter either Quantity Invoiced or Match Amount for each shipment you want to match to. Payables automatically calculates and enters the remaining field (Quantity Invoiced x Unit Price = Match Amount).
If you want to match in further detail, you can match to specific purchase order distributions:
- To match to purchase order distributions, choose Distribute. For each purchase order distribution you want to match to, select the purchase order distribution and enter either the Quantity Invoiced or Match Amount. Payables automatically calculates and enters the remaining field based on the Unit Price. (Quantity Invoiced x Unit Price = Match Amount). The Unit Price defaults from the match you made in the Match to PO window.
5. Choose Match to save your match.
To review the new invoice distributions, choose the Distributions button in the Invoices window.
To record a price decrease for a purchase order shipment or purchase order distribution:
2. Choose Match to navigate to the Match to Invoices window.
3. Payables automatically queries all invoices with the same supplier, site, and currency as the credit/debit memo.
Note: If you know that the credit/debit memo pertains to an invoice matched to a certain purchase order, you can query the purchase order number and Payables will display all invoices matched to that purchase order.
Optionally choose Invoice Overview to review more information about an invoice.
4. Match to one or more purchase order matched invoices. For each original invoice to which you want to match, select the invoice and enter a Credit Amount. Choose Match PO to navigate to the Match to PO window.
To record a price decrease for a purchase order shipment, check Price Correction, enter the Unit Price for the incremental amount of the price correction, and enter either the Quantity Invoiced or Match Amount for each shipment you want to match to. Payables automatically calculates and enters the remaining field (Quantity Invoiced x Unit Price = Match Amount).
If you want to match in further detail, you can match to specific purchase order distributions:
- To match to purchase order distributions, choose the Distribute button. For each purchase order distribution you want to match to, select the purchase order distribution, and enter either the Quantity Invoiced or Match Amount. Payables automatically calculates and enters the remaining field based on the Unit Price (Quantity Invoiced x Unit Price = Match Amount). The Unit Price defaults from the match you made in the Match to PO window.
5. Choose the Match button to save your match.
To review the new invoice distributions, choose the Distributions button in the Invoices window.
See Also
Invoice Overview
Purchasing Integration
Entering Taxes on Invoices
Entering Freight on Invoices
