If you have posted a document, for example a purchase order, and discover that some of the information on the lines was incorrect, you can correct this posted document.
In the following, an incorrect posted purchase order is used as an example.
There are three ways of correcting a posted purchase order:
Creating an identical credit memo and a new purchase order in order to reverse the posting.
Revaluing the posted items.
Creating a credit memo and posting it with an item charge.
In the following, the three methods are briefly described. None of the methods will result in an incorrectly calculated average cost.
Creating a credit memo with the same information as in the incorrectly filled-in purchase order effectively reverses the posted order. You can either fill in the credit memo manually or copy the posted document into the credit memo using the Copy Document function.
You must fill in the Appl.- to Item Entry field. This is only possible if the incorrect item ledger entry is still open. When you post the credit memo, the incorrect document has been reversed and you can re-enter it into the system by creating a new purchase order and filling it in correctly.
Reversing the incorrect document means to "delete" the quantities and the inventory value of the incorrect purchase order.
If you also want to correct the vendor accounts, you can fill the Apply to Doc.-Type and Apply to Doc.-No. fields in the purchase credit memo header. If the header has a Correction field, you must place a check mark in that field.
Using the revaluation journal to correct the posted order lets you correct the inventory value of the posted items, but you cannot update the vendor accounts or the quantity on hand.
In the revaluation journal, fill in the Item No. and Apply to Item Entry fields. Enter the correct value in the Unit Cost (Revalued) field or the Inventory Value (Revalued) field.
This method corrects the inventory value only.
You can correct the incorrect posted purchase order by creating a credit memo with the same header as the original document but without the incorrect lines. Instead, you can create an item charge line (that is, a line where the type is Charge (Item)).
First, you must have set up an item charge number to identify this kind of corrections.
You can then use the Item Charge Assignment (Purch) window to create a link to the incorrect posted purchase receipt. When you post the credit memo, the inventory value and the vendor ledger entries will be updated.
Correcting Purchase Invoices with Purchase Credit Memos
Creating Purchase Credit Memos
Setting Up Item Charge Numbers for Purchase Documents