Purchase Accrual Correction for Posted Invoice

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Good afternoon,

We are faced with the current problem.

An AP user posted an invoice against a product receipt. The product receipt was for a qty of 1. The invoice posted was for a qty of .50. The invoice has since been approved and posted. The issue we have now is that the Purchases Accrual report still shows the open received and not invoiced balance for the remaining qty on the line item.

The AP user says that they will not be receiving any additional invoices for this po and need to close it out and remove the remaining balance that is accrued on the subledger.

My question is what is the best route to do so? If we try to go back to the po receipt and correct it to .50, it will not let us. We will receive an error stating that we cannot correct the receipt because there is a pending invoice, however there is no pending invoice in the system.

What would be the best practice here?

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Ludwig Reinhard Microsoft Employee on at

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Hello James.self,

Is my understanding correct that you got delivered 1 pcs but received an invoice only for 0.5 pcs?

Best regards,

Ludwig

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Hey Ludwig,

thank you for replying.

So the po was set up as a service with a qty of 1. After the work was completed and billed, the total of the work performed equaled the amount of .31 qty wise of the total cost of the service. For some reason instead of correcting the receipt to reflect .31 instead of 1 and closing out the remaining qty to be delivered before invoicing, the AP personal proceeded to post the invoice against the received qty on 1 for only .31.

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SouravDam 11,730 on at

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Hi James.self,

Is that mean; you have posted product receipt quantity of 1.00 but invoiced with only 0.31 quantity? If 'Yes', then you cannot rectify the product receipt which you posted with 1.00 quantity because you already posted invoice for that (even with 0.31 quantity).

You have to do the following;

--- Create a return order for that item and with same item quantity which you already received and posted the invoice. Means; product receipt quantity will be -1.00 and invoice should be -0.31 quantity.

--- ERP will ask for RMA number because you are creating a return order. Mention any reference number in RMA field. Set the quantity in negative (-ve) as mentioned above in the Quantity column in the return order line. Rest all details should be same.

--- Post the product receipt for -1.00 quantity and do the invoicing again for -0.31 quantity. This will nullify the previously posted product receipt and invoice record.

--- Now create a new purchase order with the same vendor.

--- Specify the appropriate quantity of the item. Do the product receipt and invoicing with the correct quantity this time.

Best regards,
Sourav Dam

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Community Member on at

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Hey.

Ideally option 1 with the latter option but the issue I have is since the receipt has been made for a qty of 1 (the total amount) and the invoice is posted already against that receipt for a qty .5 (from my test example in a test environment,) it is not allowing me to alter the delivery remainder.

I am not sure if I follow the concept of the former under option one. How would creating another po for .5 (the remaining total help me out?).. we are just needing to alleviate the remaining amount held up in the purchase accrual account that was made present with the receipt showing a qty of 1 (which carries over a balance since the invoice was only posted at an amount of .31 against that receipt)

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hey,

when trying to create a new po and clicking the "credit note" button, I receiver the follow message,

You are not authorized to access table ‘Agreement’ (AgreementHeader). Contact your system administrator.

I have system admin security rights within the system.

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can I just create a new po with a negative line to the vendor instead of a credit note?

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SouravDam 11,730 on at

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Hi James.self,

Some error related to agreement what you are getting; that can be discussed in a new thread.

On this thread; better create a return order with negative quantity; do the product receipt and invoicing as highlighted before.

Then create a new PO with corrected product receipt and invoice.

Kindly test and update in this forum if this is solving the issue.

Best regards,
Sourav Dam

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Community Member on at

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Right.

I was able to create a new po for the negative amount, make the receipt, and create the invoice, and settle with the existing. All balances zero out on the ledger as they should have. Everything should be good to go now. I will have the user perform UAT and upon signoff, I will have them make the correction in production. Thank you for the help!

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Ludwig Reinhard Microsoft Employee on at

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Hello James.self,

From the screenshots that you shared I could see that you purchased 1 qty of services with a high price.

This is in general not a good practice especially if you post partial packing slips with quantities less than 1.

I would recommend that you reconsider how you use quantities and prices because sooner or later you might run into rounding issues that will cause you additional headache.

Best regards,

Ludwig

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