Posted Vendor Invoice Correction after PO Transaction Adjustment under Closing & Adjustment

(1) Share

Report

Posted on by Community member

Hi,

For my testing purpose, I created a PO for item A0001 with quantity 5 and unit price of $12, so total net amount was $60 on the po. I completed the product receipt and invoiced the PO which created an invoice of $60. Presuming that the unit price was incorrect, I went to Inv Mgmt--Periodic Tasks--Closing and Adjustments and adjusted the PO transaction with $140 to make the total cost as $200 ($60 + $140) which successfully did adjust it and reflected in inventory transaction adjustment column. I did this adjustment in two steps first i did adjustment of $40 and then $100. Now the problem is my PO invoice is not reflecting the adjustment. Then I ran the Recalculation on item A0001, but still invoice is not adjusted. I don’t want to cancel the invoice of PO or reverse its voucher, I want the correction of or adjustment in the PO invoice to reflect the adjusted amount of $140. How can I achieve this? I know one way, that I go to AP--Invoices--Open Vendor Invoices, select the PO invoice, click Adjustments under Details tab, there I chose MISC in Charge Code field, Net Amount in Charge Allocation field, enabled stocked option and entered the value $140 and pressed Ok button, but it didn't change the invoice amount. I also checked GL--subledger journal entries not yet transferred, but nothing is pending there. My question is that if it is correct way to bring the adjustment in PO invoice, if yes then why it is not taking effect? and my second question is that if there is any process which can automatically pick the Inventory Transactions I adjusted with $140 under Closing and Adjustments to adjust the PO invoice automatically? In a way I am trying to ask, invoice needs to be adjusted without manual value input of $140 like I did in Open Vendor Invoice--Adjustments, rather it needs to rely on adjusted transactions which I made under closing and adjustment. The strict condition in my situation here is that, PO Transactions has to have corrected/updated through Closing and Adjustment only, so I cannot avoid this step at least.

All responses (2)

Answers (1)

Community member 11 on at

Like (0)

Report

Posted Vendor Invoice Correction after PO Transaction Adjustment under Closing & Adjustment

Thanks @Andre, very well explained. Appreciate that you went in detail to explain me the purpose of inventory cost adjustments.
Verified answer

André Arnaud de Cal... 294,868 Super User 2025 Season 1 on at

Like (0)

Report

Posted Vendor Invoice Correction after PO Transaction Adjustment under Closing & Adjustment

Hi,

An inventory cost adjustment and a purchase invoice don't have any relation with each other. The invoice is managing details that a vendor did put on it and what you would need to pay to the vendor. This would then determine initially the value for the inventory transaction. With the inventory cost adjustment, you can manage profit and losses due to price fluctuations. In case you have e.g. a business selling golden and silver items, based on the gold index, you might want to revalue your inventory. This can be done with the adjustment. When you do so, you will not need to pay more or get a credit from the vendor.

Another reason for adjusting the cost, would be e.g. adding costs for warehouse handling, import tariff or other costs being invoiced by other vendors, not the one that delivered the goods.

In case there was an error posting the invoice, you would need to post a credit to reverse the invoice and then create a new invoice with the correct details.

Community site session details

Posted Vendor Invoice Correction after PO Transaction Adjustment under Closing & Adjustment

Helpful resources

News and Announcements

Quick Links

Announcing the Engage with the Community forum!

🌸 Community Spring Festival 2025 Challenge Winners! 🌸

Adis Hodzic – Community Spotlight

Leaderboard > Finance | Project Operations, Human Resources, AX, GP, SL

Featured topics

Product updates

Community site session details

Posted Vendor Invoice Correction after PO Transaction Adjustment under Closing & Adjustment

Helpful resources

News and Announcements

Quick Links

Announcing the Engage with the Community forum!

🌸 Community Spring Festival 2025 Challenge Winners! 🌸

Adis Hodzic – Community Spotlight

Subscribe to this forum!

Select categories

Leaderboard > Finance | Project Operations, Human Resources, AX, GP, SL

Featured topics

Product updates