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Fixing Receiving on Matched Invoice

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Posted on by brownmed

Hello-

We incorrectly matched an invoice to a shipment receipt. The invoice we received was only for part of the shipment. However, the entire shipment quantity was matched. To further complicate things, the unit cost of the product was adjusted so that the total invoice in GP matched the actual invoice.

For example.

Shipment was for 10,000 qty at $1.00 unit cost. Product was received and entered in GP.

Invoice #1 was for 4,000 qty at $1.00 = $4,000. Invoice was matched to the shipment at 10,000 qty at $0.40 unit cost = $4,000.

Invoice #2 was received at 6,000 qty at $1.00. We cannot match this invoice because there is no open quantity to match it too.

Unfortunately the inventory has already been allocated and sold. What can I do to correct the invoice?

Thanks

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Microsoft Dynamics GP

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Angela Eckman Ebens... 1,216 on at

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RE: Fixing Receiving on Matched Invoice

Hi,

I'm not an accountant, but I know when you adjust the inventory layer in the adjust cost utility, it will update the Cogs and IV for for the amount sold at wrong cost. So that should all be taken care of.

You could walk through the process with a new item in a TEST company and enter exactly how it is today in your live company to see what all accounts get hit when you adjust the inventory and see if it clears things out as you expect it. It if does, It might be that you just need to enter the same account number in the debit and credit (wash) if the overall accounts get updated as expected during the cost change in adjust cost.

Hope that helps.

Warmest Regards,

Angela
brownmed 55 on at

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RE: Fixing Receiving on Matched Invoice

Hi Angela-

Now that I think of it, we should debit COGS since the inventory was cleared out by the 2 transactions that were posted. Does this make sense?

Thank you
brownmed 55 on at

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RE: Fixing Receiving on Matched Invoice

Hi Angela-

This is very helpful. I do have a follow up - when I enter the invoice directly into PM for the $6,000, what account would I debit? Would I use the inventory account?
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Angela Eckman Ebens... 1,216 on at

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RE: Fixing Receiving on Matched Invoice

Hi,

Since the line was fully closed because of the typo on that invoice, there really isn't much you can do in POP since the quantities were sold out of inventory. You won't be able to return against that layer.

I would correct this all manually.

1. Invoice directly in PM for the remainder of $6000. That way you can pay the vendor. There will still be the original invoice that you will have for $4000 and now this new manually entered PM invoice for $6000. Just make a note on the new PM invoice as to what PO it references.

2. The cost on the layer is wrong as it's probably showing $.40 vrs $1.00. You can use the adjust cost window to adjust the layer back up to $1.00. Microsoft Dynamics GP > Tools > Inventory > Utilities > Adjust cost. This will do 2 things.

a. Fix the value of inventory layer and post to GL.

b. Another cost adjustment will occur because it was consumed at the wrong cost. You will see a PRUD report indicating the change and a GL j/e GLTRX batch that gets created automatically for adjusting those sold receipts.

3. Lastly just ensure Accrued purchases was cleared out. It should be when the PO was closed just just make sure.

Hope this helps! Thank you for using Microsoft Dynamics Communities,

Angela Ebensteiner

SR Technical Advisor

Microsoft Dynamics GP