Credit Claims

When a discrepancy occurs between the Suppliers invoice and your records there is a need to track and account for this discrepancy. There are 2 main sources for discrepancies in supplier invoices:

• Quantity

• Price

Quantity discrepancies are usually picked up by the Purchase order and are carried over to the supplier invoice document. Occasionally there will be a difference between the quantity received and the quantity charged on the invoice, but as most suppliers now use electronic accounting systems, delivery information usually matches invoice details.

Price differences usually occur because of price rises or from disputes over discounts etc. The main issues in a price difference are:

• Does the current product price need to be altered (ie. permanent price change)

• Is this a supplier specific price that needs to be recorded on the Supplier Catalogue for this product

• Am I going to accept the price difference on this document and pay as per the suppliers invoice or am I going to withhold the difference and wait for a credit to be issued.

Quantities of items can be claimed by using the Claimed quantity column of the document, while price claims can be made using either the Invoice cost or Claim amount fields. Entering the cost from the supplier invoice to the Invoice cost column causes the calculation of the claim amount as the difference in our cost and Invoice cost by the quantity supplied. Entering an amount to the Claim amount column causes the reverse calculation of the Invoice cost. All changes in either the quantity or amount claimed adjust the approved amount and thus the released (for payment) amount of the document.

A Credit claim document can be printed using the claim information entered to the invoice (or loaded from the purchase order). This document can be used to request a Credit note from the supplier. When a Credit note is received from a supplier you can update the approved status of the invoice by referencing the Credit Note against the Invoice. This causes the Credited quantity and amounts to be increased, counter balancing the claim quantities and completing the document.