Correcting AP Invoices 101

Have you ever posted an invoice and later realized the distribution was inaccurate or in need of updating? What about posting an invoice to an incorrect post date or with the wrong amount? Depending on the scenario, there are different methods used to make corrections.

If only changes such as invoice date, due date, description, etc. need to be made to the invoice, you may open the invoice record and make the appropriate changes. If the Post date or amount, however, needs to be edited and the invoice has been posted, the Invoice needs to be deleted and recreated. Before deleting, be sure to check our your default reversal post dates for invoices in Tools > Options. The dates are located on the Records tab in the Invoice Activity Section.

Below, I have outlined how to adjust General Ledger distribution based on at what step in processing you are on:

If an invoice is unpaid and not yet posted, changes may be made by opening the invoice record and editing as necessary. If your organization requires invoice approval, the status will need to be reverted to Pending and saved before editing may take place.

If it is unpaid and posted, within the invoice you will be able to click the Adjustment icon  towards the top of the record. The required adjustment information will be highlighted for you to complete which includes Adjustment date, which any transaction date-based report recognizes,  Adjustment Post date, which is when the adjusting transactions post to General Ledger, and Reason. Be sure to click the New Distribution tab to review the adjustment’s distribution before saving. Four adjusting transactions are created from the adjustment: two reversing the original entries and two posting the adjusted entries.

If the invoice is paid and not yet posted and you need to adjust both the invoice and payment distribution, you will void and purge the payment (as invoice adjustments are specific to Invoices), modify your invoice distribution on the GL Distribution tab, and re pay the invoice. It is only required to purge the payment should you need to use the same check number.

If the record is paid and posted, you will void and purge the payment and then create an invoice adjustment. We must void and purge the payment and re pay after doing an invoice adjustment as the payment distribution pulls from the invoice distribution at the point of creation. Keep in mind if the payment is posted, you must post the check’s reversals prior to purging.

I recommend bookmarking the following article to have on hand for future reference: “How to adjust an invoice in Accounts Payable 7”.