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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Purchase order product...
Supply chain | Supply Chain Management, Commerce
Answered

Purchase order product received and invoiced with wrong unit

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Posted on by THEN 86
Hi all,
 
I have a purchase order where the purchase is in m3. Let's say 10 m3 was ordered.
The order receiver made a product receipt on 10000 m3, as they thought it was in liters.
Now, 10000 m3 has been invoiced in the belief it was 10000 liters.
This means that the inventory of this item is now 1000 times higher than it should be, and the average unit price is as well 1000 times lower.
 
What is the best approach to fix this? (there has not yet been any consumption of the purchased)
 
Thanks in advance!
Categories:
Dynamics 365 Supply Chain Management
I have the same question (0)
  • Suggested answer
    Peter Kulikov (N.progression) Profile Picture
    Peter Kulikov (N.pr... 588 Moderator on at
    Hello,

    If there is no need to adjust the purchase itself (the total purchase amount is correct despite the incorrect quantity) and there has been no consumption yet, I would recommend using the Inventory adjustment journal.

    You should write off the currently available 10,000 m³ at the current cost price and then receive 10 m³ at the correct cost price.
  • Suggested answer
    Guy Terry Profile Picture
    Guy Terry 28,977 Moderator on at
    I would create a PO Line for -10,000 m3. You can Pick it to remove the 10,000 from inventory. For bonus points, and depending on the Inventory model you use on the Item model group, you would Mark this to the original PO line (using manual Inventory marking).
     
    Then I would create another PO Line for 10 m3 and process it as normal.
     
    You could even add both these lines to the original PO.
  • THEN Profile Picture
    THEN 86 on at
    @Guy Terry thanks for the suggestion.
    By "pick" on a purchase order, do you mean a negative product receipt?

    And what would you do about the invoice part? When testing this, the PO is no longer "Invoiced".
     
    Note: we are running FIFO and batch number.
  • Suggested answer
    Arvind Bharti Profile Picture
    Arvind Bharti 841 Super User 2026 Season 1 on at
    HI,
     
    There are two key things which you can do.
     
    1. Use inventory adjustment journal for matching the quantity with correct inventory (Use marking while removing inventory to original PO so that it picks the same cost for adustment)
     
    Now this will make sure you have right quantity
     
    2. Use Adjustments (Under closing and adjustment) to correct the cost if you see any incorrect cost
  • Guy Terry Profile Picture
    Guy Terry 28,977 Moderator on at
    Hi THEN
     
    On the PO Line, there 's a Pick function (Update line > Process > Pick). I use it to get the 10000 out of stock (it allows you to specify from which Location the stock should be taken from, for example). Then you can post the Product receipt.
     
    For the invoice part, you need to invoice the new line at the correct quantity; on the same invoice you can add the line with the negative 10,000. The total amount of the invoice should come out to zero.
     
    Also, you should look at implementing Over-delivery percentages on your Purchase orders!
  • THEN Profile Picture
    THEN 86 on at
    @Guy Terry thanks for the update.
    I figured that the pick functionality is disabled by configuration key (I could potentially get it turned on if needed if I remember which key it is...).
     
    I have tested in Contoso. Here it still includes the -10,000 m3 in the product receipt even though they are picked. Should these -10,000 m3 still be posted in the product receipt? Furthermore in testing, it seems the -10,000 m3 cannot be added to the invoice unless it has been product receipted? (if it it has to, isn't the picking step redundant then?)
     
    Thanks in advance!
     
    Note: we have a very simple inventory setup only using site/warehouse.
  • Verified answer
    Guy Terry Profile Picture
    Guy Terry 28,977 Moderator on at
    The Pick is an optional step; you only need it if you can't post the Product receipt for the -10,000 because of some error like 'location must be specified'. If you only use Site and Warehouse you won't need to worry about this.
     
    If it were me I would:
     
    - Create the new PO line for -10,000. You'd want the Net amount to be the same as the original line (Unit price can be blank).
    - Use Marking to mark this PO line to the original PO line.
    - Create the new PO line for 10. Same Unit price and Net amount as the original line.
    - Post a Product receipt to receive both new lines
    - Post an invoice for both new lines.

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