Hi Accountant, Welcome to DUG/NAV [:)]! So both your examples are because your vendor didn't know how to use their ERP system. Happy that you would like to do it better.. ? The "correct" answer would be to tell your vendor to create a correct invoice in the first place, and if that is not possible, then always a credit memo, plus a new invoice for the full amount. That is also the best practice way to handle if your company makes a mistake. A credit memo for the full amount, and then a new invoice with the correct price. But I am also well aware, that it's very common that it's handled this way. 1) If they will not send you a correct invoice, then it depend if the item is in your inventory or not. If it is, then I would just use the "correct" item no. in your system. If its not, then use a G/L account number here. 2) As you know already, then the best way is to credit the full amount/quantity and add it again with a new invoice. Even if you have already "used" the original inventory, then you can still adjust it, when you apply both the invoice and credit memo. And then you better learn to use the "Application Worksheet". Because here you can "unapply" and "reapply" so that your item cost will stay correct. You need to unapply the original receipt with the "return" from the credit memo, and then reapply the new invoice to the used inventory. I hope it helps a little.
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