Accounting Finance:Inventory Invoices-Entering Inventory Invoices for Payment

Overview

Pre-checking inventory invoices are required before they are entered for payment.

The system handles automatic creation of quantity, price and exchange rate differences. Two different kinds of variances can occur on the same invoice: price and quantity. Manual price changes are only performed if the variance is because of incorrect pricing on the PO and not a supplier error. If the variance is due to a supplier error, the supplier must be debited back for the variance unless they are able to provide a credit note on the day we need to enter the invoice. Quantity variances occur when products are shorted or come in damaged. Whenever a product needs to be returned regardless if charged or not a debit note is generated. In general we follow the $50 rule: anything over $50 we debit back the supplier, anything less we post as profit/loss unless the buyer directs us otherwise.

Invoice Entry for Payment