Transactions - Correcting

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Scope

This procedure covers processing invoice corrections.

Identification of invoice errors may come from departments or from within Accounts Receivable.

This procedure does not cover correcting misapplied payments

System References

Transactions - Crediting Transactions [NAV3613U]

Transactions - Creating [NAV3610U]

Transactions - Adjusting [NAV3612U]

Transactions - Refunds and Future Credits [NAV3616U]

Policy

An accounts receivable correction may result from:

invoice errors
pricing errors or adjustments

A Transaction Request Form is required for account adjustments resulting from invoice errors by departments without access to IS Accounts Receivable.

Customer documentation is maintained by the department.

Invoices are posted to the General Ledger on a nightly basis or when printed.

Responsibility

The AR Billing Specialist is responsible for correcting invoice errors.

Distribution

AR Administrator^*

AR Billing Specialist^*

AR Billing Specialist-Remote^*

AR Manager^*

Ownership

The AR Manager is responsible for ensuring that this document is necessary, reflects actual practice, and supports University policy.

Activity Preface

This activity is performed when an error is identified on an invoice.

The job title Invoice Creator refers to the following:

AR Administrator
AR Manager
AR Billing Specialist
AR Billing Specialist-Remote

Invoice Creator

1. Respond to identification of invoice error.

If you are in Accounts Receivable goto task #2. Otherwise, goto task #3.

2. Receive Transaction Request Form from requesting department.

3. Verify the information.

Verify the form contains the required information.
Record any corrections.

If the invoice has not been posted to the General Ledger, goto task #4.

If the invoice has been posted to the General Ledger and you want to correct for over invoicing or to cancel the invoice, goto task #7.

If the invoice has been posted to the General Ledger and you want to correct under invoicing, goto task #12.

4. Determine the fields that require correction.

You may only make edits to the Lines region. If you chose the wrong Customer Name, Type, Class, Source, or Currency field options, you must create a Credit Memo, then create a new transaction.

If corrections must be made to Customer Name, Type, Class, Source, or Currency fields, goto task #7. Otherwise, goto task #5.

5. Edit the appropriate transaction.

You may have to select the Incomplete button to 'incomplete' the transaction. You will not be allowed to edit the transaction if the Complete button is shown.

Receivables
N ® Transactions ® Transactions
Transactions

Refer to Transactions - Creating [NAV3610U].

Accounts Receivable will print and mail invoices as required.

If documentation must be sent to the customer along with the transaction, goto task #6. Otherwise, end of activity.

6. Forward any documentation to Accounts Receivable.

Forward a hard copy of the document(s) to Accounts Receivable prior to the Transaction date.

The following information must be included to ensure proper identification of the transaction(s):

Customer Name
Customer Location
Transaction Number
Transaction Date

End of activity.

7. Create a Credit Memo or create an Adjustment.

If you are in Accounts Receivable and want to create an Adjustment, goto task #8. Otherwise, goto task #9.

8. Create an Adjustment.

Receivables
N ® Transactions ® Transactions Summary
M ® Find or Find All
B ® Adjust
Adjustments

Refer to Transactions - Adjusting [NAV3612U].

You may adjust 100 % or a portion of the invoice.

Adjustments may be positive or negative.

Goto task #10.

9. Create a Credit Memo.

Receivables
N ® Transactions ® Credit Transactions
Credit Transactions

Refer to Transactions-Credit Memos [NAV3613U].

You may create a Credit Memo for the full or partial invoice amount.

If documentation must be sent to the customer along with the transaction, goto task #6. Otherwise, goto task #10.

10. Determine if you need to create a new invoice.

If you need to create a new invoice, goto task #11. Otherwise, end of activity.

11. Create a new invoice.

Receivables
N ® Transactions ® Transactions
Transactions

Refer to Transactions - Creating [NAV3610U].

Create a new invoice with the correct information.

Accounts Receivable will print and mail invoices as required.

If documentation must be sent to the customer along with the transaction, goto task #6. Otherwise, end of activity.

End of activity.

12. Determine if you need to create a debit memo for the under invoiced amount or if you need to credit the entire invoice and recreate the invoice for the full amount.

Your customer may ask or require that only one invoice be provided. In this case, the invoice must be credited in full and a new invoice created. Otherwise, the customer will receive an additional invoice for the under invoiced amount.

If you want to create a debit memo for the under invoiced amount, goto task #13. Otherwise, goto task #6.

13. Create a debit memo.

Receivables
N ® Transactions ® Transactions
Transactions

Refer to Transactions - Creating [NAV3610U].

If documentation must be sent to the customer along with the transaction, goto task #6. Otherwise, end of activity.

End of activity.

Transactions - Correcting: Flowchart

Effective: 08/13/04