Mistakenly create AP invoice for receipt lines but figured out never receive the line goods

Epicor ERP 10
1

Hello all,

I’m trying to figure out the inner workings of how Epicor handles incorrect AP invoice with incorrect receipt line.

SCENARIO: We have a PO with line#1 = 100 part A and line#2 = 100 part B for $10 each. So the PO amount should be $2000. When the warehouse manager does the receipt entry and closes this PO, the ap department creates an AP invoice of amount $2000 for this PO. However, the warehouse manager stated he was actually received 100 part A only.

I’m facing a problem: what should I do to fix the invoice amount and inventory quantity?

If I create a Debit Memo, debit $1000 on account payable, and credit $1000 inventory asset, it seems the problem be solved. However, we still have an “extra” 100 part B need to adjust, If I also do a quantity adjustment, the system supposed to automatically credit $1000 inventory asset and debit $1000 cost of goods sold.

Any thoughts?

Thanks,

Willer

2

First problem is that the Receiving Person told the system they received A, but really didn’t. Do they know how to avoid that in the future?

Second, your Supplier needs to issue you a credit (which is a debit on your side).

Third, you have an invoice for the full amount of A & B, but didn’t get A. You will want a Debit Memo for A at this point. Imagine you did receive A, but they were all bad and needed returned. It would be the same thing to the system.

3

The problem is, we don’t have B actually, so normally we will do quantity adjust which blind with inventory asset and cost of good sold GL account. On account side, if we do debit memo, we will credit inventory asset and debit account payable. If the warehouse manager use quantity adjustment module to adjust the quantity of B, it will cause to credit inventory asset and debit cost of good sold. Isn’t that mean double credit inventory asset account?( we use average cost method; standard method will not have this probmen)
On another word, if I credit a debit memo to solve the ap invoice amount problem, quantity adjustment to solve the quantity problem, do I need to do a cost adjustment to solve the inventory asset problem?