Correcting Invoices
You can reverse a billing before an invoice is posted by entering a negative quantity on the original sales order. Then process the invoice normally. This can be done whenever it is necessary to make a change involving an item, quantity, price, discount, or commission.
However, to correct posted invoices, you must create new sales orders with new sales order numbers, then process the new, corrected sales orders normally. To streamline this process, you can use the correction invoice feature enabled in Sales Order Accounting Control (36.9.6).
When this is enabled, you can create a correction sales order for a posted invoice by entering the correct amounts rather than by entering the difference between the original invoice and the correct amount. You can also keep track of the relationship between the original invoices and their correction invoices.
After creating the correction sales order, you ship it, optionally creating a shipper document. You can post and print the correction invoice—displaying the original amounts, the corrected amounts, and the differences between the two. Finally, you can archive correction invoice data when it is no longer needed.
Correction invoices are a legal requirement in some countries and a preferred accounting approach in others.
Control correction invoice processing by:
• Enabling the feature in Sales Order Accounting Control
• Optionally, allowing corrections to closed invoices in Sales Order Accounting Control
• Creating correction reason codes in Reason Codes Maintenance (36.2.17) with a reason type of CORRINV
Note: Correction invoices have the following limitations:
• They cannot be used for configured items.
• They cannot be used to modify container and line charges.
• They do not automatically pick up changes to master data such as freight rates, price lists, or tax rates. Such changes need to be manually entered in the correction order.
• Only one correction invoice can be used to correct an original invoice. If further corrections are required, you must add another correction invoice to correct the first correction invoice. Links are made between all corrections and the original invoice.