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Evo-ERP and DBA Classic >> Manufacturing >> Correcting Vendor Overcharge in Inventory
http://www.istechforum.com/YaBB.pl?num=1200435199

Message started by CCKEITH on 01/15/08 at 15:13:19

Title: Correcting Vendor Overcharge in Inventory
Post by CCKEITH on 01/15/08 at 15:13:19

We received an item in PO-C and were invoiced incorrectly for the item, but the incorrect invoice was processed in AP-C before the overcharge was noticed.

We were credited for the overcharge and I know we can enter it as a credit memo in AP-B but the correcting invoice which was a credit for the overcharge has no relationship in Evo to the original receipt and AP-C. How do we make sure that the last and average cost of the item is correct?

Title: Re: Correcting Vendor Overcharge in Inventory
Post by David Waldmann on 01/16/08 at 05:05:46

You may consider entering a new PO with a negative line at the old price and a positive line at the new price. The total should come up to the credit memo you received and the withdrawal/re-receipt should fix the average cost, but may not depending on what it was before.

Another way is to manually figure out what the new last and average cost should be and change it in IN-K. You may then want to make a GL-B entry.

Title: Re: Correcting Vendor Overcharge in Inventory
Post by lmk223a on 01/16/08 at 07:15:50

What I usually do is make 2 entries in Accounts Payable.

In this situation, first reverse the first invoice entered in AP-C, by entering the invoice number and respond, yes, to the question - do you want to reverse this invoice.

Then I enter in AP-C only the properly billed price from the first invoice which shows the incorrrect price.
I.E. if I was charged $12 each instead of $10 each, I would enter the $10 price in AP-C. This ensures inventory has the proper cost.

Then I make a second entry in AP-B for the $2 overcharge times quantity received. The total of these 2 entries equals the incorrectly billed invoice.

When the credit memo arrives, I enter the credit memo in AP-B for the $2 overcharge.

This way ensures the Vendor's Accounts Receivable can match the invoiced amount and credit memo amount on their set of books when I remit payment. The payment stub will show the total amount of the incorrect invoice (though 2 entries) and the credit memo amount.

Title: Re: Correcting Vendor Overcharge in Inventory
Post by CCKEITH on 01/16/08 at 09:41:23

Thanks David and lmk223a.

I decided to process the overcharge using lmk223a's suggestion. It worked great. The entries will be easy for our vendor to follow.