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Recording Price Corrections From the Invoice Workbench

Use a price correction when a supplier sends an invoice for a change in unit price for an invoice you have matched to a purchase order or receipt.
Payables records and updates the invoiced unit price of previously matched purchase order shipments or distributions without adjusting the quantity billed so you can track price variances. Payables also updates the amount billed on the originally matched purchase order distributions.
You can record a simple price correction by entering a credit or debit memo and matching to a purchase order matched invoice. However, we recommend that you record all price corrections by matching to a purchase order or receipt, as described in this document.
To record a price correction for a purchase order shipment or purchase order distribution:
1. Enter the invoice.
If you are recording a price increase, enter a Standard, PO Default, or Mixed invoice. If you select PO Default, then Payables prompts you to enter the PO Number. Payables then automatically defaults the supplier, supplier number, and currency from the purchase order to the Invoices window.
If you are recording a price decrease, enter a Credit Memo or Debit Memo type invoice.
2. Select Purchase Order or Receipt from the Match button poplist, then choose the Match button.
3. In the Find Purchase Orders for Matching or Find Receipts for Matching window, check Price Correction and enter the invoice number for which you are recording the price correction. Enter search criteria for the purchase order(s) or receipts to which you want to match the invoice.
4. Choose the Find button to navigate to the Match to Purchase Orders window or Match to Receipts window.
5. Payables opens the Match to Purchase Orders window or Match to Receipts window.
6. Adjust the invoiced unit price of a previously matched purchase order shipment by matching a price correction to it. To record a price increase for a purchase order shipment, enter the Unit Price for the incremental amount of the price correction, and enter either Quantity Invoiced or Match Amount for each shipment you want to match to. If you enter a value for Quantity Invoiced on a price correction, the quantity is used only to calculate the Match Amount (Quantity Invoiced x Unit Price = Match Amount). Payables does not record this quantity in the Invoiced Quantity field on the credit/debit memo distribution because a price correction does not involve the movement of goods, only an adjustment in the price of previously invoiced goods.
7. If you want to match in further detail, you can match to specific purchase order distributions:
To match to purchase order distributions, choose the Distribute button. Select the purchase order distribution you want to match to and enter the Quantity Invoiced. Payables automatically calculates and enters the remaining field (Quantity Invoiced x Unit Price = Match Amount). The Unit Price defaults from the Match to Purchase Orders window and you cannot change it.
8. Choose Match to save your match.
To review the new invoice distributions, choose the Distributions button in the Invoices window.

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