Invoice Corrections
With corrections you can adjust invoices that were matched to purchase order schedules, distributions, receipts, or consumption advice documents. You can also adjust amounts of invoices that weren't matched.
The correction is the difference between the original price, quantity, or amount, and the new price, quantity, or amount. For example, if a supplier decreases the price by 10 USD, the correction invoice is for -10 USD.
You can perform price, quantity, and amount corrections. The purchase order line type determines what type of correction you can make to a matched invoice. The purchase order line type can be amount-based or quantity-based.
Price Corrections
A price correction adjusts the unit price of an invoice that was matched to a purchase order, receipt, or consumption advice. Price corrections don't adjust billed quantities on purchase orders. To correct an invoice for a price decrease, you can create a credit or debit memo. To correct an invoice for a price increase, create a standard invoice.
The following table provides an example of a price correction.
|
Step |
Quantity |
Unit Price |
Billed Quantity on Purchase Order |
|---|---|---|---|
|
Create a purchase order. |
5 |
10 USD |
0 |
|
Pay the invoice, which results in an invoice price variance of 5*2=10 USD. |
5 |
12 USD |
5 |
|
Create a credit memo for the price correction, which offsets the invoice price variance. |
5 |
-2 USD |
5 |
Quantity Corrections
A quantity correction adjusts the quantity of an invoice that was matched to purchase order, receipt, or consumption advice. Quantity corrections don't adjust unit prices on purchase orders. To perform a quantity correction, create a credit or debit memo.
The following table provides an example of a quantity correction.
|
Step |
Quantity |
Unit Price |
Billed Quantity on Purchase Order |
|---|---|---|---|
|
Create a purchase order. |
200 |
100 USD |
0 |
|
Pay the invoice. |
200 |
100 USD |
200 |
|
Return the defective items and create a debit memo to correct the quantity. |
-10 |
100 USD |
150 |
Amount Corrections
An amount correction adjusts an invoice that was matched to a service-based purchase order or receipt. Amount corrections can also adjust amounts on unmatched invoices. For a negative amount correction, create a credit or debit memo. For a positive amount correction, create a standard invoice.