QAD EE Correction Invoices

Posted on: June 24, 2019 | By: Tim Lovely | QAD Business Process, QAD Distribution, QAD Financials, QAD Manufacturing, QAD Practice News

Historically in QAD, any corrections to a posted Sales Order Invoice would normally be done through the creation of an adjusting invoice in Pending Invoice Maintenance. A negative line item with the original (incorrect) Item, Quantity and / or Price would be entered, followed by an additional line with the corrected Item, Quantity and / or Price. This process corrected key historical data for sales, sales history, and salesperson history, but generated no system link between the two invoices, beyond potentially use of comments or a client specified field for such purpose.

With the advent of QAD’s Correction Invoice functionality, QAD has created an inherent link between the two invoices. The setup for Correction Invoices is fairly simple, involving the following steps:

  • In the Sales Order Accounting Control File, enable the use of Correction Invoices by setting the Use Correction Invoices field to Yes
  • In Reason Code Maintenance, define Reason Codes with Reason Type = CORRINV. An example may be PRICE or FREIGHT
  • Update the Invoice Print and Reprint QRF Correction Invoice as needed with your company’s Invoice Logo and other company specific information you may wish to have on the invoice

Once enabled, in Sales Order Maintenance, immediately after you generate a new Sales Order, you will be prompted for an invoice to reference in the Original Invoice field, followed by a Reason for the Correction. If this is a normal Sales Order, you may simply bypass these fields. For a Correction Invoice Sales Order, add a previously posted invoice and reason for the correction. The original invoice data will be pulled into the Sales Order and you may make changes as needed. Note that you will then need to ship the Sales Order in Sales Order Shipments to generate the correction invoice, which will appear like any other pending invoice record. This pending invoice can now follow the standard Invoice Post and Print process. Logan Consulting recommends using a separate Invoice Print or Reprint run just for Correction Invoices, as they will need to print separately even though they are in the same QRF.

Four key benefits of this process are as follows:

  1. The printed QRF Correction Invoice will show the original invoice detail, the correction, and the net amount due to the customer. There is no need to add comments or send the original invoice to a customer, as all the relevant information is displayed.
  2. A data link between the original invoice and correction invoice. This can easily be seen in the Correction Invoice Link Report, Invoice History Browse, and on the Correction Invoice itself.
  3. The Accounts Receivable record for the original invoice can be updated to reflect the net change, versus having two unrelated invoices to which cash must be applied.
  4. Reason Codes for the corrections can be tracked as business metrics to enable improved performance on original invoices.

About Logan Consulting

Logan Consulting is a leading consulting firm with strengths in strategy, project management, business process design, ERP and CRM implementation, recruitment and training.  Since 1992, our business process-based delivery techniques and tools have helped our clients build a solid business process and information technology foundation to support their business.  Our clients count on us for objective, unbiased analysis, recommendations and project work.  To learn more and hear what our customers are saying about us, please visit our website (www.logan-consulting.com).

Logan Consulting is headquartered in Chicago, IL with global services reach.

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