Item Received Not Invoiced. Can we reverse?

slmaluwa

Hi
Sorry, I didn't search the forum for any earlier discussion.
We ran into a situation where the Purchasing Officer has entered an incorrect UoM in a P/O.
Ex: Instead of US$800 per Metric Ton, he has entered US$800 per KG

Item was received by the stores from Vendor and SK has posted the P/O with RECEIVE option.

But, the receipt is not yet invoiced. Due to this ERROR, the AVG cost is gone sky-high and we wanted to reverse the receipt and edit the P/O.

I see an option in Posted Receipt for "Undo Receipt". What will be the effect running this?
1. Will it alter the Avg Cost back to normal?
2. Will it allow us to EDIT p/o and post again?

What is the best possible method to correct these type of problems?

TIA

Maluwa

Sandeep_Prajapati

Yes, Undo Reciept can be done for each line in the reciept, line by line.

1. Will it alter the Avg Cost back to normal?

Yes.

2. Will it allow us to EDIT p/o and post again?

Yes. O:)

Deep

The Undo receipt function is OK.
To prevent these errors frequently, its better to use the "Purchase UOM" field on the item card, if the purchases for an item is done generally in a specific UOM.

The system cannot restrict you from entering any other UOM while purchasing. You may highlight the fields so that the users can be cautiuos while entering.

slmaluwa

In the line of above scenerio, we now have come to a special one.
Assume:
Item "A":
Ordered Qty = 100
Received Qty = 90
Invoiced Qty = 50

Item A physicall received qty was only 50 and the user has made an incorrect receipt. But, invoiced for the correct qty.

Now, we are trying to remove this pending P/O from the system. NAV doesn't allow because "Qty Received But Not invoiced" is not 0.

When we go the receipt and try to "Undo The Receipt", it is not allowing by saying that the receipt was already invoiced (partially and balance also shown as Qty to Invoice).

Please advice me how to handle tis situation. Our primary goal is to clear/delete pending purchase order while undoing the erroneous recipt.

Thank you in advance

AdamRoue

The entire line has to be received not invoiced for the undo to work.

Invoice teh remaining amount of the receipt, then credit it. If the amount is still outstanding with the vendor add an additional line to handle this.

This process will ensure the inventory and liability positions are correct. If you use exact cost reversing it will also ensure the credit and invoice costs match.

slmaluwa

Hi Adam
Thank you for the reply.
Can you please elaborate the following line which is bit confuse me.

AdamRoue wrote:

If the amount is still outstanding with the vendor add an additional line to handle this.

Thank you

Maluwa

AdamRoue

If for example you have 90 on the order, you correctly receive and invoice 50 and then on the second part receipt you receive 40. However it is the 40 that is incorrect, it should have been 20. If you invoice and credit off 20 there will be no reflection anywhere in the system that the vendor is still going to send you another 20, they do not know you over booked the quantity. So they will be sending you 20, but NAV will not know this unless you reflect it in the system, so add another line, otherwise you may run planning and it will tell you to order another 20!

themave

if you are unable to do an unrecieve, like you mentioned above, another solution is to simply add two lines to the po, one line make for a negative amount, and use the incorrect uom and price, post this, it effectively reverses the first incorrect entry you made. then make a new line, with the correct qty, uom, and price and receive it. this put the items in inventory they way they were supposed to be in the first place. the negative line and the original line reverse each other, so the average cost is correct. inventory is correct.