Adjusting A/P Invoices and Credits

I posted an A/P invoice and there is a problem with it; how do I get rid of it or make a correction?

If you need to remove an A/P invoice, you can reverse the invoice or issue a credit. An adjustment can be made to an invoice by entering the same invoice number and vendor on a new invoice session.

How do I reverse a single invoice?

To reverse a specific invoice within a session, complete the following steps:

  1. Select Transactions>Accounts Payable>Enter A/P Invoices.
  2. Enter the session information, and then click the Start button. This is a new session that will contain the invoice reversal, so you will want to label it accordingly.
  3. Click Reverse Posted Document on the transaction entry form.
  4. Select the original Session ID and Document Number that you want to reverse on the Reverse Posted Document form.
  5. For the Reversed Document Number, leave it the same as the original document number. Usually you leave the dates the same as well. Update the description to indicate it is a reversal or correction.
  6. Review the reversal. When satisfied that it is correct, click OK and then click Save or Post.
How do I reverse an entire A/P invoice session at once?

Select Activities>Manage Sessions>Reverse Posted Sessions to reverse an entire session. You will then specify the transaction type as API and indicate which session you want to reverse. You must enter a new Session ID for the reversal and specify whether you want to use the original document and effective dates. Finally, update the description and Save. A Batch-To Post session is created, which can be reviewed or edited using Transactions>Accounts Payable>Enter A/P Invoices or posted when satisfied it is correct.

I entered an invoice; there was something wrong with it, so I entered a negative invoice to get rid of it. Now I have a positive and a negative invoice to be paid. What happened, and how do I correct it?

Accounts Payable organizes records by invoice number. If you enter a negative invoice and the number is not EXACTLY the same, you will create a new (negative) invoice. To correct the problem you need to find the exact numbers of both invoices and then reverse them or issue a credit against them. These invoice numbers are displayed in the Activities>Accounts Payable>Select A/P Invoices to Pay or can be found as document numbers on your reports.

I have an A/P invoice that has had a lot of activity (voids, reversals, payments), and it is showing up as outstanding (with a positive or negative amount). What do I do without making it worse?

Follow these steps:

  1. Run a Detailed A/P Ledger using the Reports>Accounts Payable>Detail A/P Ledger report.
    • On the Setup tab—For the date range, run it from the first of last year to the end of next year.
    • On the Content tab—Include the following columns in the Report Body.
    • Original Invoice/Credit Number
      Document Number (Depending on the transaction source, this will be the check number, invoice number, or credit number)
      Session ID
      Transaction Source
      Effective Date
      Payments
      Charges
    • On the Filter tab—Filter for the Vendor ID and Original Invoice Number in question.
    • On the Options tab—Deselect Summarize Amounts.

    2. This report will give you a list of all activity that has happened to that invoice. The transaction source will tell you if each transaction is a:

    • Invoice (API)
    • System Generated Check/Voucher (APS)
    • Manual Check (APC)
    • Credit (APM)
    • Void Check/Voucher (APV)

  2. Use the following table to interpret the results:

    3. Type

    Transaction Source

    "Payments" Column

    "Charges" Column

    Invoice

    API

    Reversed Invoice

    Invoice

    System Generated Check/ Voucher

    APS

    Check/Voucher

    Reversed Check/ Voucher

    Manual Check

    APC

    Check

    Reversed Check

    Credit

    APM

    Credit

    Reversed Credit

  3. Review the payments and charges to determine the source of the error. You will then need to reverse the problem transactions.
I have a credit from a vendor, but there are no unpaid invoices from that vendor against which to apply it. How do I enter it into the system?

Enter it as a negative invoice using the Transactions>Accounts Payable>Enter A/P Invoices form.

Can I issue a credit against a negative invoice?

Yes, the feature of a credit is that it will reduce the A/P part of an invoice to zero, regardless of the balance. It is up to you to enter the opposite balance in the proper account (usually your expense account).

I have an invoice with a negative balance. What happened?

The two most common causes are:

  • The invoice was paid, and then it was reversed (intentionally or accidentally). To correct this, determine whether or not the invoice should be in the system. Did the check get sent to a vendor and is it good? If not reverse or void the payment. If the check was good, you may reenter the invoice or reverse the reversal that took it out. Be sure to use the same invoice number.
  • The invoice was paid more than once. Most of the time this happens when the payment was made with a Batch-To Post status, then invoices were selected for payment again and a second payment was made. Then both payments were posted. Another scenario might be that the payment was copied and posted a second time. Regardless of the cause, the solution is to void the check or reverse one of the payments.