How do I reverse a Enter/Match invoice on a Vendor account?

(0) Share

Report

Posted on by Mrs. J. Solt

330

I have a series of troubles: First the PO was made on product # 210074 for 1250 ML at $50.00 each and should have been on the PO for 1.25 L at $50.00 each. (You can see where this has caused problems in our manufacturing costs of vaccines since this product #210074 is used to manufacture these vaccines.) Then this PO was received in as 1250 ML at $50.00 but when this was invoiced to the Vendor account using Enter/Match Invoice it was invoiced as 1.25 ML at $50.00 leaving a quantity of 1248.75 left to invoice to this vendor. SO I have a remaining inventory on the original PO and I have the wrong cost effecting the cost stacks. Can you help me try to fix this?

*This post is locked for comments

I have the same question (0)

All responses (11)

Answers (3)

Verified answer

Mahmoud Saadi 32,738 on at

Like (1)

Report
First of all, we should break down the problem in order to understand how the correction criteria shall go.

Receiving Transaction Entry: we need to figure out how much of the quantity received have been consumed by manufacturing, and then we could consider one of the following scenarios

In case The shipment has not been consumed through transfers, I would suggest using the "Adjust Cost Utility" in order to adjust the cost of the receiving and the other documents consuming it.

In case there were transfers consuming the receiving, the "Adjust Cost Utility" may not be appropriate since it will leave unbalanced transfers. Therefore, I would suggest reversing the transactions with "corrective adjustment" with old incorrect unit cost, then re-enter the correct receiving with the correct unit cost.

In order to retrieve the receiving document with the layers consuming it, please use the following script which considers the following tables;

IV10200 | Purchase Receipt Work

IV10201 | Purchase Receipt Work detail

USE #DBName
SELECT
   A.RCPTNMBR,
   A.ITEMNMBR,
   A.TRXLOCTN,
   A.DATERECD,
   A.QTYRECVD,
   A.QTYSOLD,
   A.UNITCOST,
   A.ADJUNITCOST,
   B.ORIGINDOCID,
   B.QTYSOLD,
   B.UNITCOST
   FROM IV10200 AS A
   LEFT OUTER JOIN IV10201 AS B
   ON   A.RCTSEQNM = B.SRCRCTSEQNM AND
       A.ITEMNMBR = B.ITEMNMBR
   WHERE A.ITEMNMBR = '#ItemNumber'       AND
          A.RCPTNMBR = '#ReceivingNumber'

Note:

The adjust cost utility will ensure that all the cost adjustment documents will be posted into HITB associated with the corrective Journal Entries to correct your General Ledger Account Balance. Although, I would never recommend using it in case transfers were included as explained above

Enter match invoice: correcting the vendor balance considering the Payable Transaction Entry window in order ensure that the Accounts Payable account is corrected.

Purchase Order Entry: changing the status of the old purchase order accordingly or closing it if possible, and creating a new purchase order with the required quantities and cost to.

Your feedback is highly appreciated in order to dig fir further details if required.

Best Regards,

Mahmoud AlSaadi

Was this reply helpful? Yes No
Mrs. J. Solt 330 on at

Like (0)

Report

I have tried to mimic this in our test company but I want to make sure I am not missing anything. I know there are no transfers related to this product number and so far there has not been any vaccines manufactured with this inventory number since this mistake had happened. I have Entered the PO in our TEST environment exactly like it is in live I received it the same and I used enter/match invoice to invoice this to the vendor. I then moved forward to change the price in the Inventory Adjust Price Utility, I closed the open PO and the remaining inventory balance as well as correcting the current cost that show on the item maintenance screen to $50.00 instead of $62,500.00. Am I missing something or should this fix all aspects of this mistake by our staff?

Was this reply helpful? Yes No
Zhigang Lu 795 on at

Like (0)

Report

According to your all information, there are no transfers related to this product number and so far there has not been any vaccines manufactured with this inventory number since this mistake had happened. I will suggest to process the following steps to fix the above issue.

1. Issue Return w/Credit for 1.25 ML at $50.00.

2. Issue and receive another new PO for 1.25 ML at $0.04.

3. Invoice match for these two receivings 1248.75 ML and 1.25 ML.

Was this reply helpful? Yes No
Mrs. J. Solt 330 on at

Like (0)

Report

Are you sure I want to invoice match these two receiving because the original cost for the First PO was made on product # 210074 for 1250 ML at $50.00 each and SHOULD HAV EBEEN been on the PO for 1.25 L at $50.00 each.....

Was this reply helpful? Yes No

Verified answer

Mahmoud Saadi

32,738 on at

Like (1)

Report

First of all, I would assume that the script I have provided above returns no records, right !
Even if it does return records, I am only concerned about the document type (3), a transfer document. Since no transfer documents have consumed the receiving layer, then you don't need to worry about the after effect of the Adjust Cost Utility

In order to correct, you need to ensure that the correction criteria should encompass all the modules in order to correct the following;

Vendor Balance | Purchasing Module
Item Cost | Inventory Module
Account Balance | GL Module

As for the General Ledger and the Inventory Module, the Adjust Cost Utility will ensure that the cost will be corrected accordingly in order to either increase/decrease the cost along with the GL account balances. Although, still the Accounts Payable (linked to vendor) is not corrected yet !

The next step is to consider the vendor, I have mentioned previously that you need to post either a return or a credit memo in order to either increase or decrease the accounts payable accordingly.

Finally, closing the purchase order and creating a new one is required (though, it doesn't have any financial effect)

Case Study

I will tp simplify the illustration by providing a simple example that is similar to your case in order to illustrate the effects of the correction criteria;

Assuming the following;

Receiving an item | Unit Cost = 12
Enter Match / invoice | Unit Cost = 10
Adjust Cost | Unit Cost = 20

The journal entries are shown below;

Transaction	Account Number	Debit	Credit	Unit Cost
Receiving	Inventory Account	120	0	12
Receiving	Accrued Purchases	0	120	12
Invoice	Inventory Account	0	20	10
Invoice	Accrued Purchases	120	0	10
Invoice	Accounts Payable	0	100	10
Adjust Cost	Inventory Account	100	0	20
Adjust Cost	Accrued Purchases	0	100	20
Credit Memo	Accounts Payable	0	100	20
Credit Memo	Accrued Purchases	100	0	20

Accounts	Debit	Credit	Balance
Accounts Payable	0	200	(200)
Accrued Purchase	220	220	0
Inventory Account	220	20	200

I would still recommend running the corrective documents on a test company as you have already started, and you could check the following as soon as you finish correcting;

Item Unit Cost - along with the cost layers details if any
Vendor Balace
Accounts Balances (Inventory Account, Accured Purchases and Accounts Payable)

Your feedback is highly appreciated in order to dig for further details if required.

Was this reply helpful? Yes No

Zhigang Lu 795 on at

Like (0)

Report

At first please check If you can process step 1. If yes, I think it should be ok to fix the above issues using my suggestion..

Step 2 Unit cost should be $0.05.

Step 3 Modify unit cost to correct unit cost(1248.75 ml at $0.05 each). After you post, unit cost will be automatically adjusted to 1.25 ml at $0.05 each and 1248.75 ml at $0.05 each.

Was this reply helpful? Yes No
Mrs. J. Solt 330 on at

Like (0)

Report

GP2ME: Step One can not be completed because there is not RCT # available to select with the Return w/Credit. Do you have another suggestion?

Was this reply helpful? Yes No
Mrs. J. Solt 330 on at

Like (0)

Report

First the PO014592 was made on product # 210074 for 1250 ML at $50.00 each and should have been on the PO for 1.25 L at $50.00 each. (You can see where this has caused problems in our manufacturing costs of vaccines since this product #210074 is used to manufacture these vaccines.) Then this PO014592 was received in as 1250 ML at $50.00 but when this was invoiced to the Vendor VMCL0001 account using Enter/Match Invoice it was invoiced as 1.25 ML at $50.00 (should have been 1.25 L, not ML) leaving a quantity of 1248.75 left to invoice to this vendor. So I have a remaining inventory on the original PO014592 and I have the wrong cost effecting the cost stacks. We cannot do a return to this vendor on this RCT029453 because it has been paid (doc dated 07-29-13, entered 08-09-13) We can do an inventory price utility to change the cost (but this will not correct the unit of measure to correct the amount of inventory) and close the open PO014592. What other options can you think of? –

The payable is correct, the PO is still open, the inventory is off and the current cost is wrong…What about an inventory price utility change to correct the current cost, a manual close of the PO and an inventory adjustment to correct the amount of inventory on hand? Do you believe this would cover everything?

Was this reply helpful? Yes No
Zhigang Lu 795 on at

Like (0)

Report

In inventory adjust costs window, for Quantity Received 1.25ml, what is Quantity Sold? 0 or 1.25? If it is zero, you should be able to issue Return w/credit.

Was this reply helpful? Yes No

Mahmoud Saadi

32,738 on at

Like (0)

Report

Dear Ms. Jennifer

According to your explanation above, I would assume the following .. This is the current status of your balances:

Quantity	QTY in Base Factor	Base UOFM	QuantityInBase	Unit Cost	ExtendedCost
1250	1	ML	1250	50	62500
1.25	1	ML	1.25	50	62.5
Variance					62437.5

Transaction	Account Number	Debit	Credit
Receiving	Inventory Account	62500	0
Receiving	Accrued Purchases	0	62500
Invoice	Inventory Account	0	62437.5
Invoice	Accrued Purchases	62500	0
Invoice	Accounts Payable	0	62.5

In this essence, the account balances are:

Accounts	Debit	Credit	Balance
Accounts Payable	0	62.5	$ (62.50)
Accrued Purchases	62500	62500	0
Inventory Account	62500	62437.5	62.5

Is this right ?

You must have a problem now with the quantity that is left to be invoiced on the Receiving:

Quantity Shipped: 1250 ML
Quantity Invoiced: 1.25 ML

I really need to dig further in details in order to provide you with a preceise step by step criteria to apply. Please run the following scrip using SQL Management Studio and provide me with the results as soon as you can;

SELECT * FROM IV10200 WHERE RCPTNMBR = '#ReceivingNumber'
SELECT * FROM SEE30303 WHERE DOCNUMBR IN ('#ReceivingNumber','#InvoiceNumber')

SELECT * FROM POP10500 WHERE PONUMBER = '#PONumber'
SELECT * FROM POP30300 WHERE POPRCTNM = '#ReceivingNumber'
SELECT * FROM POP10600 WHERE POPRCTNM = '#ReceivingNumber'

SELECT * FROM GL20000 WHERE JRNENTRY IN
(SELECT DISTINCT JRNENTRY FROM SEE30303 WHERE DOCNUMBR IN('#ReceivingNumber','#InvoiceNumber'))

You could e-mail me the results on mahmoodsaadi@live.com in order to thoroughly check your case and provide you with the steps to apply, along with the justifications