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Currently, the user voids the old invoice, enters a sales return document, then enters a new invoice through SOP, where an annotation is made on the new invoice referencing the invoice number of the voided invoice. Is this the best way to handle accomplish this task or is there a better way?
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I agree, Belinda. But keep in mind the invoices are sent electronically and need to be tracked through the AR aging, but I guess Smartlist could be used as well. In any case the unposted invoices would need to be monitored along with the posted invoices. I have not thought through that process but it might get a little cumbersome.
And your right about cash flow not being effected if it's possible to transmit electronic invoices on an unposted invoices. That's something to look into.
Your observations are very helpful.
You can still print and send the Customer the invoice, and you can extract the GL distributions and post an "accrued" reversing entry in the GL at the end of a reporting cycle.
The only way it would affect cash flow is if you enter payment with the invoice prior to posting the invoice.
I think the unposted invoices have an adverse effect on cash flow, Belinda.
Richard asked an important question with timing. How long between the first invoice and the changes? It may be oversimplified, but can you leave the invoice unposted until all changes are confirmed? What problems would that present, as these may be easier problems to solve.
Thanks for your input, Richard. These changes are required after invoicing, and they typically involve part item exchanges. So it looks like we'll need to process a sales return, apply that sales return document to the original open invoice, effectively reversing that invoice, and create a new invoice reflecting the changed line item. The data entry in that process is a bit much but that appears to be the best process.
The AR agings will show original invoices with a full credits applied from sales returns. That report might be a little busy but the process ensures that only one invoice is associated with a work order.
It really depends on the audit trail you need to maintain and the extent of the "change order". Your use of the phrase "change order" brings several things to mind. Are the items being sold custom built or are you just referring to the customer's desire to buy something else.
The process also depends on timing. If the customer requests a change before products are shipped or after the products are shipped/invoiced, your procedure will be different.
Can you give us some details?
If you are processing exchanges (the customer returns something to get something else) then your process of invoicing for the new item then entering a return of the original items and appling the credit from the return to the new sale is the best process. And, No, you would not void the original invoice as the return reverses that sales transaction.
Belinda,
Thanks for a really good suggestion. Your suggestion almost works for this scenario. But here's the challenge: There are third party payors in the process, namely, insurance companies. When the subcontractor confirms completion, an electronic invoice is programmatically created from the Dynamics GP invoice and sent via EDI to the third party payor. The EDI invoice includes a work order number provided by the third party payor. The third party payor makes only one payment per work order. So even if you have a small line item change, like billable hours increased by 30 minutes, the previous invoice should be voided, and a new invoice reflecting the change should be created.
And to respond to your question, Frank, EDI invoices are transmitted prior to receipt of the subcontractors' invoices, because those invoices need to be placed in the pipeline for payment as quickly as possible. Waiting on an invoice from an auto repair shop in another state kills the timing.
Hi Greg,
If you did use a change order, it would create an additional invoice, not create a new invoice to replace the old invoice. So let's talk about how to link 2 invoices together.
I would suggest using the Master Number to track orders, keeping a line on the order open until the invoice is finalized. See the video Below.
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Well, there is no such animal as a Change Order in Sales Order Processing. I have to wonder why you would accept an invoice from your vendor that differs from the original work order they submitted? Is the work order considered just an estimate?
Version 10.0. Agreed-upon subcontracted work hours for auto repairs are entered as a line item in SOP, along with parts. When the subcontractor completes the work, a completed work order is faxed into the office. The invoice is generated at that point. There are situations where the hours and/or parts billed to the customer are changed when the vendor's invoice is received. That's when a change order needs to be processed.
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